The total product of the 10 employees of ABC is 10,000 bags. The firm is considering employing a Chinese worker whose marginal product is 900 bags. Each bag is sold at K10 and all the workers are paid a flat wage of K8, 900. A. What is the average product before and after this worker is employed? B. Should ABC employ the new Chinese worker? . What is the minimum
The total product of the 10 employees of ABC is 10,000 bags. The firm is considering employing a Chinese worker whose marginal product is 900 bags. Each bag is sold at K10 and all the workers are paid a flat wage of K8, 900. A. What is the average product before and after this worker is employed? B. Should ABC employ the new Chinese worker? . What is the minimum
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter19: Labor And Entrepreneurship: The Human Inputs
Section: Chapter Questions
Problem 4TY
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The total product of the 10 employees of ABC is 10,000 bags. The firm is considering
employing a Chinese worker whose marginal product is 900 bags. Each bag is sold at
K10 and all the workers are paid a flat wage of K8, 900.
A. What is the average product before and after this worker is employed?
B. Should ABC employ the new Chinese worker? .
What is the minimum marginal product that ABC can accept for any additional worker under the prevailing price and wage rate?
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