Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 19, Problem 4IAPA
To determine
To compute:
Changes in the marginal product of worker and their number due to rise in price of coffee from $4 to $5.
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Stephanie is looking to hire workers to help her produce earrings. The current hourly market wage rate is $10 per worker. Assume this
is a perfectly competitive market.
Instructions: Enter your answers as a whole number.
a. Fill in the "Total Labor Cost" and "Marginal Resource Cost" columns in the table below.
Stephanie's Resource Costs
Labor
(workers)
0
1
2
3
4
5
6
7
$10
b. Graph the marginal resource cost of labor (MRC) for Stephanie's business.
Instructions: Use the tool provided 'MRC' to plot the line point by point, starting from 1 worker up to 7 workers (7 points total).
Wage Rate (dollars per hour)
$12
$8
$6
Total Labor Cost
(dollars per hour)
$0
$4
$2
Marginal Resource Cost
Marginal Resource Cost
(dollars per hour)
$
Tools
/
MRC
Robert can make 10 pizzas each hour. He works 8 hours each day. He is paid $100 a day. The shop can sell the pizzas for $15 each. What is the pizza shop's marginal profit from hiring Robert?
10. The following is a total cost curve. Sketch the corresponding
marginal cost curve. If the price of output is $3 and there
are no fixed costs, what is the profit-maximizing level
of output?
Chapter 19 Solutions
Foundations of Economics (8th Edition)
Ch. 19 - Prob. 1SPPACh. 19 - Prob. 2SPPACh. 19 - Prob. 3SPPACh. 19 - Prob. 4SPPACh. 19 - Prob. 5SPPACh. 19 - Prob. 6SPPACh. 19 - Prob. 7SPPACh. 19 - Prob. 8SPPACh. 19 - Prob. 9SPPACh. 19 - Prob. 10SPPA
Ch. 19 - Prob. 1IAPACh. 19 - Prob. 2IAPACh. 19 - Prob. 3IAPACh. 19 - Prob. 4IAPACh. 19 - Prob. 5IAPACh. 19 - Prob. 6IAPACh. 19 - Prob. 7IAPACh. 19 - Prob. 8IAPACh. 19 - Prob. 9IAPACh. 19 - Prob. 1MCQCh. 19 - Prob. 2MCQCh. 19 - Prob. 3MCQCh. 19 - Prob. 4MCQCh. 19 - Prob. 5MCQCh. 19 - Prob. 6MCQCh. 19 - Prob. 7MCQ
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