If the price of each unit of output is $10 and each worker hired must be paid $40 per day, how many workers should Ms. Smith hire? Workers hired 0 1 2 3 4 5 6 Total product 0 12 22 30 36 40 42
Ms. Smith, the owner and manager of the Clear Duplicating Service Located near a major university, is contemplating keeping her shop open after 4p.m. and until midnight. In order to do so, she would have to hire additional workers. She estimates that the additional workers would generate the following total output (where each unit of output refers 100 pages duplicated). If the price of each unit of output is $10 and each worker hired must be paid $40 per day, how many workers should Ms. Smith hire?
Workers hired 0 1 2 3 4 5 6
Total product 0 12 22 30 36 40 42
** Ms. Smith should hire workers as long as their marginal revenue product (MRP) exceeds their marginal resource cost (MRC), and until MRP=MRC. MRP=MR x MP = P x MP = $10 x MP and MRC=wages=$40. Please use the information in the problem to figure out MP.
Top-quality papers guaranteed
100% original papers
We sell only unique pieces of writing completed according to your demands.
We use security encryption to keep your personal data protected.
We can give your money back if something goes wrong with your order.
Enjoy the free features we offer to everyone
Get a free title page formatted according to the specifics of your particular style.
Request us to use APA, MLA, Harvard, Chicago, or any other style for your essay.
Don’t pay extra for a list of references that perfectly fits your academic needs.
24/7 support assistance
Ask us a question anytime you need to—we don’t charge extra for supporting you!
Calculate how much your essay costs
What we are popular for
- English 101
- Business Studies