| Question | Production data for Bob’s Bicycle Factory are as follows: Number of workers Bikes assembled per day 1……………………………….. 10 2……………………………….. 18 3……………………………….. 24 4……………………………….. 28 5……………………………….. 30 Other than wages, Bob has costs of $100 (for parts and so on) for each bike assembled. a. Bikes sell for $130 each. Find the marginal product and the value of the marginal product for each worker (don’t forget about Bob’s cost for parts). b. Make a table showing Bob’s demand curve for labor. c. Repeat part b for the case in which bikes sell for $140 each. d. Repeat part b for the case in which worker productivity increases by 50 per¬cent. Bikes sell for $130 each. |
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| Subject | business economics |
