Hi I am in the process of doing some practice question. I have done
the first part of the first question and need help in the second part
of the first question.  the first part of the question was: Find the
marginal revenue product of the labor. Labor, output and price per
output $3 was given.

Labor	Output	Marginal Price	Total 	Marginal Average 
                product  per    revenue revenue  revenue
                         output         product  product          
1	40	40	3	120	120	120
2	75	35	3	225	105	112.50
3	97	22	3	291	66	97
4	107	10	3	321	30	80.25
5	112	5	3	336	15	67.20
6	102	-10	3	306	-30	51

The second part of the question is: assume that the company wants to
maximise profit and the workers are paid $30 a day.  How many workers
will this company employ?  What would be demand curve for the workers?

another question I have is:
if there is a firm that incurs a cost of $20 a day for labor and the
cost of capital is $30 a day.  It also has cost outlay of $600 a day.

a. if this firm is an efficient producer, what is the marginal rate of
technical substitution of labor for capital?
b. At the profit maximising production level, if the marginal product
of labor is 20 shirts per worker, what is the marginal product of
capital?


Your clarification of question 1 part (a) and helping me solve the
second part of the first question will much be appreciated.

Question 2 (a & b) - can you teach me how to solve it
thanks

Question 1(a)

Since the MRP for each unit of labour is different (because of
diminishing marginal returns, and hence differing MP), the question
should read "Find the marginal revenue product of the Nth unit of
labour". In this case, you'd already have found it under your 6th
column. I wouldn't know how to answer the question phrased in the way
given above :)

Question 1(b)

A profit-maximising firm will employ up to a level where the last
worker contributes as much to revenue as it costs, ie. at the point
where Marginal Revenue Product = Marginal Factor Cost. Assuming the
firm is operating in a perfectly competitive labour market, Marginal
Factor Cost is a constant and is equivalent to the Average Factor Cost
(Wage = $30). To find how many workers the firm is willing to employ,
look for the point where MRP=$30. Answer: 4 workers.

The demand curve of a profit-maximising firm will be the
downward-sloping portion of the MRP curve. Working from the same
principle as above (MRP=MFC), you can see that when Wage=$30, Quantity
Demanded = 4; when Wage = $15, Quantity Demanded = 5. With these 2
points, you can derive your demand curve.

--------
What I learn in Economics doesn't cover question 2, so I can't help
you with that. :)