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17. The table below shows the number of cakes that could be baked daily at a local bakery, depending on the number of bakers. Number of Number of MPL VMPĮ Bakers Cakes 1 10 18 3 23 4 27 a. Calculate the marginal product of labor. (Please report your answers in the table above.) Do you observe the law of diminishing marginal returns? b. Suppose each cake sells for $10. Calculate the marginal revenue product of labor. c. Draw the marginal revenue product of labor curve, which is the demand curve for bakers. d. If each baker is paid $80 per day, how many bakers will the bakery owner hire, given that the goal is to maximize profits? How many cakes will be baked and sold each day?

17. The table below shows the number of cakes that could be baked daily at a local bakery, depending on the number of bakers. Number of Number of MPL VMPĮ Bakers Cakes 1 10 18 3 23 4 27 a. Calculate the marginal product of labor. (Please report your answers in the table above.) Do you observe the law of diminishing marginal returns? b. Suppose each cake sells for $10. Calculate the marginal revenue product of labor. c. Draw the marginal revenue product of labor curve, which is the demand curve for bakers. d. If each baker is paid $80 per day, how many bakers will the bakery owner hire, given that the goal is to maximize profits? How many cakes will be baked and sold each day?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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The table below shows the number of cakes that could be baked daily at a local bakery, depending on the number of bakers. | Number of Bakers | Number of Cakes | \( \text{MP}_L \) | \( \text{VMP}_L \) | |------------------|-----------------|-------------------|--------------------| | 0 | 0 | | | | 1 | 10 | | | | 2 | 18 | | | | 3 | 23 | | | | 4 | 27 | | | a. Calculate the marginal product of labor. (Please report your answers in the table above.) Do you observe the law of diminishing marginal returns? b. Suppose each cake sells for $10. Calculate the marginal revenue product of labor. c. Draw the marginal revenue product of labor curve, which is the demand curve for bakers. d. If each baker is paid $80 per day, how many bakers will the bakery owner hire, given that the goal is to maximize profits? How many cakes will be baked and sold each day?
Transcribed Image Text:The table below shows the number of cakes that could be baked daily at a local bakery, depending on the number of bakers. | Number of Bakers | Number of Cakes | \( \text{MP}_L \) | \( \text{VMP}_L \) | |------------------|-----------------|-------------------|--------------------| | 0 | 0 | | | | 1 | 10 | | | | 2 | 18 | | | | 3 | 23 | | | | 4 | 27 | | | a. Calculate the marginal product of labor. (Please report your answers in the table above.) Do you observe the law of diminishing marginal returns? b. Suppose each cake sells for $10. Calculate the marginal revenue product of labor. c. Draw the marginal revenue product of labor curve, which is the demand curve for bakers. d. If each baker is paid $80 per day, how many bakers will the bakery owner hire, given that the goal is to maximize profits? How many cakes will be baked and sold each day?
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