A firm has employed its workers X and Y optimally such that the marginal product of X is 10 bags while that of Y is 15 bags of wheat. If Y’s wage is K750, what is X’s wage? b) Company B has employed 20 workers whose average product is 1000 Kgs of maize. The wage given to each worker is K2000 while the price of each bag is K20. An additional worker produces 2000 but demands a wage of K3000. Should the additional worker be employed? c) Firm A sells its product at K20 while its variable costs is K15 per unit. It can earn K3 per unity accounting profit in its next best alternative. How much should it produce to earn a zero economic profit? d) What will be the economic profit if firm A above produces and sells 4000 units of its product
A firm has employed its workers X and Y optimally such that the marginal product of X is 10 bags while that of Y is 15 bags of wheat. If Y’s wage is K750, what is X’s wage?
b) Company B has employed 20 workers whose average product is 1000 Kgs of maize. The wage given to each worker is K2000 while the price of each bag is K20. An additional worker produces 2000 but demands a wage of K3000. Should the additional worker be employed?
c) Firm A sells its product at K20 while its variable costs is K15 per unit. It can earn K3 per unity accounting profit in its next best alternative. How much should it produce to earn a zero economic profit?
d) What will be the economic profit if firm A above produces and sells 4000 units of its product
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