51 4. Calculate the marginal product of hiring the 6 55 fourth worker and the fourth worker's value of marginal product. How many workers will Kaiser's hire to maximize its profit and how many milkshakes a day will Kaiser's produce? If the price of a milkshake rises to $5, how many workers will Kaiser's hire? 5. 6.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Solve the following?

Use the following data to work Problems 4 to 7.
Kaiser's Ice Cream Parlour hires workers to produce milkshakes. The market for
milkshakes is perfectly competitive, and the price of a milkshake is $4. The labour
market is competitive, and the wage rate is $40 a day. The table shows the workers'
total product schedule.
Quantity produced
workers (milkshakes per day)
7
Number of
21
3
33
43
51
Calculate the marginal product of hiring the
fourth worker and the fourth worker's value of
4.
55
marginal product.
How many workers will Kaiser's hire to maximize its profit and how many
milkshakes a day will Kaiser's produce?
5.
If the price of a milkshake rises to $5, how many workers will Kaiser's hire?
7.
6.
Kaiser's installs a new machine for making milkshakes that increases the
productivity of workers by 50 percent. If the price of a milkshake remains at $4
and the wage rises to $48 a day, how many workers does Kaiser's hire?
456
Transcribed Image Text:Use the following data to work Problems 4 to 7. Kaiser's Ice Cream Parlour hires workers to produce milkshakes. The market for milkshakes is perfectly competitive, and the price of a milkshake is $4. The labour market is competitive, and the wage rate is $40 a day. The table shows the workers' total product schedule. Quantity produced workers (milkshakes per day) 7 Number of 21 3 33 43 51 Calculate the marginal product of hiring the fourth worker and the fourth worker's value of 4. 55 marginal product. How many workers will Kaiser's hire to maximize its profit and how many milkshakes a day will Kaiser's produce? 5. If the price of a milkshake rises to $5, how many workers will Kaiser's hire? 7. 6. Kaiser's installs a new machine for making milkshakes that increases the productivity of workers by 50 percent. If the price of a milkshake remains at $4 and the wage rises to $48 a day, how many workers does Kaiser's hire? 456
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