Question

Pierre produces wedges of aged cheddar cheese and sells them for $12 each. The table below shows the labor productivity

forPierre's cheese-making business. Fill in the missing values. Assume this is a perfectly competitive market.
Instructions: Round your answers to one decimal place.
Pierre's Cheese Business and Revenues

Labor
0
2
4
6
8
10
12
14

Total Product (wedges
of cheese)
(workers)
0
———
48
66
82
———
———
114
Marginal Product
(wedges of cheese)
/
12
——-
9
——-
7
5
4
Price
(dollars)
$12
12
12
12
12
12
12
12
Total Revenue
(dollars)
$0
288
———
792
984
———
1,272
———
Marginal Revenue
Product (dollars)
/
———
144
108
———
84
———
48

Answer 1

Answer: To fill in the missing values, we can use the formulas for marginal product and marginal revenue product:

Marginal Product = Change in Total Product / Change in Labor

Marginal Revenue Product = Price x Marginal Product

Using the given information, we can fill in the missing values as follows:

Labor Total Product Marginal Product Price Total Revenue Marginal Revenue Product

0 0 - $12 $0 -

2 48 24 $12 $288 $288

4 66 9 $12 $792 $108

6 82 7 $12 $984 $84

8 96 5 $12 $1,152 $60

10 114 9 $12 $1,368 $108

12 132 9 $12 $1,584 $108

14 150 9 $12 $1,800 $108

So the missing values are:

Total Product for labor = 0 and 14: 0 and 150, respectively.

Marginal Product for labor = 0, 8, and 14: -, 5, and 9, respectively.

Total Revenue for labor = 4, 6, and 8: $792, $984, and $1,152, respectively.

Marginal Revenue Product for labor = 0, 4, and 6: -, $84, and $60, respectively.

Step-by-step explanation: :)