Problem 2 Y MPL 2 1,8 3 2,4 2,9 5 3,3 6. 3,6 7 3,8 2.1 Fill the table above computing the MPL for every value of L. Precisely state the definition of MPL and the formula you are using to compute it. 2.2 Suppose the real wage W/P is equal to 0.4. What is the optimal level of labor? Motivate your answer in detail. 2.3 Graph the output as a function of labor units. What is the graphical interpretation of MPL and why? Explain and interpret your answer.

Problem 2 Y MPL 2 1,8 3 2,4 2,9 5 3,3 6. 3,6 7 3,8 2.1 Fill the table above computing the MPL for every value of L. Precisely state the definition of MPL and the formula you are using to compute it. 2.2 Suppose the real wage W/P is equal to 0.4. What is the optimal level of labor? Motivate your answer in detail. 2.3 Graph the output as a function of labor units. What is the graphical interpretation of MPL and why? Explain and interpret your answer.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.8P

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