Question

PLS THIS IS MY LAST CHANCE ON THE HOMEWORK PLS REVIEW CAREFULLY THANKS

Tom hires workers to pack the tomatoes he grows. The market for tomatoes is perfectly​ competitive, and the price of tomatoes is​ $2 a box. The labor market is​ competitive, and the market wage rate is​ $16 an hour. The table shows the​workers' total product schedule.

1.

Calculate the marginal product of the third worker hired and that​ worker's value of marginal product.

The marginal product of the third worker hired is ...................... and that​ worker's value of marginal product is

​$ .....................

Number of workers	Quantity produced ​(boxes packed per​ hour)
1	14
2	26
3	36
4	44
5	50

2..

If the wage that a competitive firm must pay its workers exceeds their value of marginal​ product, the firm will

A.

increase the quantity of labor it employs.

B.

decrease the quantity of labor it employs.

C.

lower the price of the good.

D.

raise the price of the good.

Answer 1

Number of workers (L)	Quantity produced(Q) ​(boxes packed per​ hour)	Marginal Product MP= Q/L	Value of MP = Price MP = $2 MP
1	14	-
2	26	12	24
3	36	10	20
4	44	8	16
5	50

1.

The marginal product of the third worker hired is 10 and that​ worker's value of marginal product is ​$20.

2. Since perfect competition prevails in commodity and factor markets. Then each firm takes the market wage rate is given and determined the demand for quantity of labor at the point where the wage rate is equal to the value of marginal productivity of labor. If the wage that a competitive firm must pay its workers exceeds their value of marginal​ product, the firm will decrease the quantity of labor it employ. Therefore the answer is option

B. decrease the quantity of labor it employs.