Calculate MPL & MRP to determine how many employees the firm should hire. 1) Calculate MPL and the MRP of the business. We can assume that price = $3 and that the business must pay a wage to its employees of $20 per day. # of employees: Output MPL MRP 1 90 120 3 132 4 140 142 6 143 A*Based on these numbers, how many employees should this business use? Explain your answer. B*Show what the graph would like this for this firm if we have lines for wage and MRP. Show where they would cross and the optimal number of employees used also C*Explain what you think would happen if demand went up for the product and now price goes up to $4. LO

Calculate MPL & MRP to determine how many employees the firm should hire. 1) Calculate MPL and the MRP of the business. We can assume that price = $3 and that the business must pay a wage to its employees of $20 per day. # of employees: Output MPL MRP 1 90 120 3 132 4 140 142 6 143 ABased on these numbers, how many employees should this business use? Explain your answer. BShow what the graph would like this for this firm if we have lines for wage and MRP. Show where they would cross and the optimal number of employees used also C*Explain what you think would happen if demand went up for the product and now price goes up to $4. LO

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

See similar textbooks

Similar questions

Suppose that labor is the only input used by aperfectly competitive firm. The firm’s productionfunction is as follows:Days of Labor Units of Output0 days 0 units1 72 133 194 255 286 297 29a. Calculate the marginal product of each additionalworker.b. Each unit of output sells for $10. Calculate thevalue of the marginal product of each worker.c. Compute the demand schedule showing thenumber of workers hired for all wages from zeroto $100 a day.d. Graph the firm’s labor-demand curve.e. What happens to this demand curve if the price ofoutput rises from $10 to $12 per unit?
The marginal product of effort, a typical worker in fast-food burger joint, is one- fourth burgers per hour; that is, MPe = .25The price of a burger is $2. The figure graphs Mac’s marginal cost of effort. If Mac increases his effort by one unit per hour, the change in the burger joint’s revenue is $ per hour. That is, what is VMPe , the value of Mac ‘s marginal product of effort ? Plot the VMPe curve in the figure. Mac efficient effort e^ is the solution to what equation? Illustrate the solution in the figure. Mac efficient…
Lets assume this situation is real! Dissimliar to Lyft, where drivers have their own vehicles, Ebay delivery companies own the delivery trucks and hire drivers. Refer to the table below, what is the marginal product of the 4th delivery driver? Using the table, if the profit/delivery is $5, what is the value of the marginal product of the 2nd delivery driver? Using the information above, if the pay rate is $170/day, how many delivery drivers should the company hire?
Consider a manufacturing firm in a labor market that isperfectly competitive. There are two kinds of workers: productiveworkers whose marginal revenue product is $48,000 per year, andlazy workers whose marginal revenue product is $40,000 per year. Itis difficult for the firm to differentiate between productive andlazy workers. A local college offers a new yearlong astronomy course. Althoughthe cost of tuition is the same for both types of workers, thepsychic cost of having to work hard and get a passing grade islower for productive workers because they are able to learn morequickly than lazy workers. Therefore, the cost of taking the class(including the cost of tuition as well as the psychic cost) is$5,000 per year for a productive worker and $10,000 per year for alazy worker. Because astronomy has little relevance tomanufacturing, taking the class does not increase or decrease aworker's productivity. The firm uses the class as a way to differentiate betweenproductive and lazy…
Calculate the Marginal Product (MP) at each input level. If the price of printer is $100 each, calculate the Value of the Marginal of labor (VMPL). If the wage rate (per week) is $1800 , how many workers will be employed? If the firm decides to hire 14 workers, what is the maximum wage the firm would be willing to pay?
In the following diagram, how many workers will be hired if the wage rate the firm has to pay is $30 and the price of the output is $5 Type your numeric answer and submit Labor Output 0 0 1 12 2 22 3 30 4 36 5 40 6 42 C
5 föt the factors of production be labor and capital equipment. A competitive firm is facing the following input prices: the wage rate is wi = $8 per hour and the rental rate of capital is w2 = $16 per hour. At the current input mix the marginal product of labor is 24 and that of capital is 32. Should the firm change its input mix? Why?
Paducah Slugger Company makes baseball bats out of lumber supplied to it by Acme Sporting Goods, which pays Paducah $10 for each finished bat. Paducah's only factors of production are lathe operators and a small building with a lathe. The number of bats per day it produces depends on the number of employee-hours per day, as shown in the table below. a. The wage is $15 per hour and Paducah's daily fixed cost for the lathe and building is $60. Instructions: Complete the table below. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Express marginal cost values rounded to the nearest penny (two decimal places). Q (bats per day) Number of employee-hours per day 0 0 5 1 10 2 15 4 20 7 25 11 30 35 16 22 Total revenue Total labor cost Total cost Profit ($ per day) ($ per day) ($ per day) ($ per day) Marginal cost per bat What is the profit-maximizing quantity of bats (note the values for MR and MC)? bats. b. What would Paducah's…
Paducah Slugger Company makes baseball bats out of lumber supplied to it by Acme Sporting Goods, which pays Paducah $10 for each finished bat. Paducah's only factors of production are lathe operators and a small building with a lathe. The number of bats per day it produces depends on the number of employee-hours per day, as shown in the table below. a. The wage is $15 per hour and Paducah’s daily fixed cost for the lathe and building is $50. Instructions: Complete the table below. If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. Express marginal cost values rounded to the nearest penny (two decimal places). Q (bats per day) Number of employee-hours per day Total revenue($ per day) Total labor cost($ per day) Total cost($ per day) Profit($ per day) Marginal costper bat 0 0 — 5 1 10 2 15 4 20 7 25 11 30 16 35 22 What is the…
Paducah Slugger Company makes baseball bats out of lumber supplied to it by Acme Sporting Goods, which pays Paducah $10 for each finished bat. Paducah's only factors of production are lathe operators and a small building with a lathe. The number of bats per day it produces depends on the number of employee-hours per day, as shown in the table below. a. The wage is $15 per hour and Paducah's daily fixed cost for the lathe and bulding is $60 Instructions: Complete the table below. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Express marginal cost values rounded to the nearest penny (two decimal places). Number of Total Total labor Marginal Q (bats per employee-hours per day) revenue cost Total cost Profit cost day (8 per day) (S per day) (S per day) 60 ($ per day) 60 -25 per bat in 50 15 75 1e 30 90 10 150 200 250 300 350 30 35 25 15 4 60 120 20 105 165 25 1 165 225 30 16 240 300 35 22 390 40 OEE What is the profit-maximizing…
1. Julie needs to hire a plumber. She is told that the cost of hiring the plumber, C, is determined by the amount of time spent on the job, t, in hours. The plumber charges a one-time fee of $30 and an hourly rate of $40. How many hours did the plumber work if Julie paid him $190? Find the value for C (total cost) when time, t =0. Write a sentence describing its meaning.
56 48 40 32 24 16 0 - Total Cost is $ 2400 4800 7200 The graph shows the short-run cost curves for a firm in a perfectly competitive market. The firm's only variable input is labour and the wage rate is $36. If market price is $48: - profit-maximizing level of output is - Total Fixed Cost is $ - for the profit maximizing output the firm should hire - the firm's profit is $ If market price is $16: - profit-maximizing level of output is 9600 - the firm's profit is $ SMC ATC units of labour. AVC