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Consider the following information for a soccer ball manufacturing firm that can sell as many soccer balls as it wants for $12 per ball.
a. Fill in all the blanks in the table.
b. Verify that MRPL for this firm can be calculated in two ways: (1) change in TR from adding another worker and (2) MPL times the price of output.
c. If this firm must pay a wage rate of $320 per worker per week, how many workers should it hire? Briefly explain why.
d. Suppose the wage rate rises to $400 per worker per week. How many workers should be hired now? Why?
e. Suppose the firm adopts a new technology that increases output at each level of employment by 50 percent and the price of soccer balls remains at $12. What is the effect of this new technology on MPL and on MRPL? At a wage of $400, how many workers should the firm hire now?