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The Marginal Product of Labor at Ronald's Outboard Motor Manufacturing

Question 95

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The marginal product of labor at Ronald's Outboard Motor Manufacturing plant is MPL(L) = The marginal product of labor at Ronald's Outboard Motor Manufacturing plant is MP<sub>L</sub>(L) = Ronald can sell every unit of output he produces for $100. Determine Ronald's marginal revenue of the product of labor. If Ronald can hire all the labor hours he would like at $15, calculate Ronald's optimal employment level. If the wage rate falls to $10, calculate Ronald's new level of employment.
Ronald can sell every unit of output he produces for $100. Determine Ronald's marginal revenue of the product of labor. If Ronald can hire all the labor hours he would like at $15, calculate Ronald's optimal employment level. If the wage rate falls to $10, calculate Ronald's new level of employment.

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