Suppose a campus restaurant increases the number of workers it hires from 4 workers per day to 10 workers per day. As a result, itstotal revenue increases from $180 per day to $500 per day.Instructions: Enter your answers rounded to two decimal places.a. Assuming that each worker is equally productive, what is the marginal revenue product per day of each additional worker?b. Assuming the restaurant is using its resources in a profit-maximizing way, and that each worker works 5 days each week, what isthe current weekly wage rate in the labor market?+Aper week

Marginal Revenue Product (MRP):MRP measures the additional revenue a firm earns by employing one…

Answered: Suppose a campus restaurant increases…

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

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Similar questions

Suppose that hiring a third worker at the campus coffee shop increases output from $100 per hour to $150 per hour. What is the marginal revenue product (of labor) per hour from adding that third worker? Instructions: Enter your answer as a whole number. +A
Omega Custom Cabinets produces and sells custom bathroom vanities. The firm has determined that if it hires 10 workers, it can produce 20 vanities per week. If it hires 11 workers, a can produce 22 vanities per week. It sells each vanity for $800, and it pays each of its workers $1,000 per week Which of the following it correct? 1) For the 11 th worker, the marginal profit is $600. 2) For the 11 th worker, the marginal revenue product is $2,000. 3) The firm is maximizing its profit. 4)If the firm is employing 11 workers, then its profit would increase if it cut back to 10 workers
Imagine you run a game day shuttle service for parking services for the local ball club. Your costs for different customer loads are 1: $30, 2: $32, 3: $35, 4: $38, 5: $42, 6: $48, 7: $57, and 8: $68. What are your marginal costs for each customer load level? If you are compensated $10 per ride, what customer load would you want? Please show all work.
Suppose that labor is the only input used by a perfectly competitive firm. The firm’s production function is as follows: Number of Workers: 0, 1, 2, 3, 4, 5, 6, 7 Units of Output: 0, 7, 13, 19, 25, 28, 29, 29 a. Calculate the marginal product for each additional worker. b. Each unit of output sells for $10. Calculate the value of the marginal product of each worker. c. Compute the marginal profit if the wage is $100 a day. 2. Your enterprising uncle opens a sandwich shop that employs 7 people. The employees are paid $12 per hour, and a sandwich sells for $6. If your uncle is maximizing his profit, what is the value of the marginal product of the last worker he hired? What is that worker’s marginal product?
When a firm is a perfect competitor in the product market, its demand curve for labor will _____ because the _____ product declines as additional workers are hired. Select one: a. slope downward; average b. be horizontal; average c. slope upward; marginal d. slope downward; marginal
Using the table below, what is the Marginal Product of Labor for the 4th worker? Quantity produced Fixed Cost Variable Cost 6,000 6,000 6,000 6,000 6,000 6,000 6,000 Number of workers 500 1,000 1,500 2,000 2,500 3,000 1 1,000 1,900 2,700 3,400 4,000 3 4 6. 4,500 800 700 600 O 500
Assume the Jacksonville Jaguars, a football team, are in the process of hiring players. The following hypothetical table of data gives the necessary information to the manager to hire quarterbacks. Salary (Thousands of dollars) Number of Quarterbacks 0 о 100 1 200 2 300 3 400 4 500 5 Total Cost of Quarterbacks (Thousands of dollars) Marginal Factor Cost (MFC) Marginal Revenue Product (MRP) (Thousands of dollars) (Thousands of dollars) 100 700 100 300 650 400 500 600 900 700 550 1,600 900 500 2,500 On the following graph, use orange points (square symbol) to plot the labor supply curve for quarterbacks, starting with point (1, 100). Next, use green points (triangle symbol) to plot the marginal factor cost curve on the midpoints of the horizontal axis, starting with point (0.5, 100). Note: Plot points from left to right in the order you would like them to appear. Points will connect automatically. SALARY (Thousands of dollars) 1000 900 800 700 Labor Supply 600 MFC MRP 500 400 300 200 100…
Suppose that hiring a third worker at the campus coffee shop increases sales from $115 per hour to $130 per hour. What is the marginal product of labor per hour from adding that third worker? Instructions: Enter your answer as a whole number.
Question 12 Refer to Figure 1 If the shop pays its mechanics a wage of $600 per day, then what is the shop's marginal profit from that third mechanic? (Enter your answer without a dollar sign.)
suppose Fred produces 500 litres of milk every day with 10 workers. the price of milk is $12 per litre, and each worker is paid $550 daily. if th margin product of the last worker employed is 40 litres of milk, explain whether Fred is maximizing his profit. If not, can Fred incrase his profit by employing more or fewer workers? If Fred buys more dairy cattles, how will it affect his demand for labor? Explain with a diagram.
You own a small sandwich shop with two employees. They've asked you to consider hiring additional workers for the lunch shift, but you are concerned that doing so may cut into you're profits. Using the table below, calculate the marginal product, value of marginal product, and marginal profit of hiring additional workers. What action should you take (choose one) A. Hire two more employees B. Hit one more employee C. Fire one employee D. Do not hire anyone
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?

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