The following schedule shows the technology of production at Mahalo Macadamia
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The following schedule shows the technology of production at Mahalo Macadamia

Technology of production

The following schedule shows the technology of production at Mahalo Macadamia Nut Farm for 2015:

If macadamia nuts sell for $3.50 per pound and workers can be hired in a competitive labor market for $800 per week, how many workers should be hired? What if workers unionized and the weekly wages doubled? (Hint: Create marginal product and marginal revenue product columns for the table.) Explain your answers clearly.

Hint
The marginal product of an input is the extra output resulting from adding one more unit of input to the already existing combination of factors of production. It is also referred to as a marginal physical product. When marginal product increases, the total product also increases at an increasing rate....

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