EBK MANAGERIAL ECONOMICS
4th Edition
ISBN: 8220100546624
Author: FROEB
Publisher: YUZU
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Question
Chapter 4, Problem 7MC
To determine
The marginal cost of the 13th worker.
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Students have asked these similar questions
. A firm’s decision about how many workers to hire.
Calculate MPP and MRP in table below. The price of the product price is $6. Must show work.
Labor Q per day
MPP
MRP
1
40
68
3
89
4
108
123
Units of
Labor
0
1
2
3
4
5
Quantity of
Output
0
10
25
32
38
43
Product
Price
$17
$16
$15
$14
$13
$12
Marginal Revenue
Product
(A)
(B)
(C)
(D)
(E)
2
Use the table above. Assume all figures in the table pertaining to labor productivity are per-hour.
1. If the wage is $25 per hour, this firm should hire [Select]
2. If the wage is $50 per hour, this firm should hire [Select]
Chapter 4 Solutions
EBK MANAGERIAL ECONOMICS
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Similar questions
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- If q=4lnL and the good is sold for $10 and the wage rate is $6.50 a. the fifth worker would be hired b. the fifth worker would not be hired adding the fifth worker would reduce the firms profit c. the fifth worker would keep profits unchanged d. adding the fifth worker would increase the firms profits e. both (a) and (d).arrow_forwardExplain factors affecting labour of supplyarrow_forward10. Recently, some college alumni started a moving service for students living on campus. They have three employees and are debating hiring a fourth. The hourly wage for an employee is $18 per hour. An average moving job takes four hours. The company currently does three moving jobs per week, but with one more employee, the company could manage five jobs per week. The company charges $80 for a moving job. What would be the new employee’s marginal product of labor? What is the value of that marginal product? Should the moving service hire a fourth worker?arrow_forward
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