Answer Happy

Number of workers /day
Total product - boxes of oranges
Marginal product of labor
Price/box of oranges
Total revenue
Marginal revenue product of labor
Marginal input cost - wage/day
Change in profit/day
0
0
0
23
0
0
1
13
13
23
299
299
48
251
2
29
16
23
667
368
48
320
3
51
22
23
1173
506
48
458
4
68
17
23
1564
391
48
343
5
79
11
23
1817
253
48
205
6
88
9
23
2024
207
48
159
7
94
6
23
2162
138
48
90
8
97
3
23
2231
69
48
21
9
98
1
23
2254
23
48
-25
10
95
-3
23
2185
-69
48
-117
Based on the table above, answer the following
questions.
How many workers should the grove owner hire?
Why
The grove will hire until the wages paid out to
the worker is greater than the revenue brought in by the worker; at
that point, hiring stops. This is because marginal input costs must
remain less than the marginal revenue product and help the owner
keep a constraint on how many workers he can hire. So in this case
the owner could hire up to 8 workers.
How does your answer change if a large Brazilian company
buys up all of the groves in central Florida, creating monopsony
power for this company? The grove
certainly can hire more workers, but
will it? Explain why or why not.