Microeconomics: Principles & Policy
14th Edition
ISBN: 9781337794992
Author: William J. Baumol, Alan S. Blinder, John L. Solow
Publisher: Cengage Learning
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The following table shows the relationship between the number of trainers working at the new gym (SD Fitness) and the number of clients they can train per week. These clients represent the output of the firm. Clients pay $60 per hour.
Find the Marginal Product (MPL) for the 4th, 5th and 6th trainer.
Find the Value of Marginal Product (VMPL) of the 4th, 5th and 6th trainer.
SD Fitness’s trainers are paid $650 per week. How many trainers will the gym hire? How do you know?
The following table shows the number of pizzas that can be produced by a large pizza parlor employing various numbers of pizza chefs.
Number of Chefs Number of Pizzas per Day
1 40
2 64
3 82
4 92
5 100
6 92
Find the marginal physical product schedule of the pizza chefs.
Assuming a price of $9 per pizza, find the marginal revenue product schedule.
If chefs are paid $100 per day, how many chefs will this pizza parlor employ? How would your answer…
At the local Wendy's franchise, the hourly wage is $9 per worker. The franchise employs 15 workers per hour, and the marginal product of labor is 3 burgers per hour. The price of each burger is $3.50. Is the franchise maximizing profit? If not, would it increase profit by employing more workers or fewer workers? Briefly explain your answer.
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