Suppose a campus restaurant increases the number of workers it hires from 3 workers per day to 7 workers per day. As a result, its total revenue increases from $135 per day to $350 per day. Instructions: Enter your answers rounded to two decimal places. a. Assuming that each worker is equally productive, what is the marginal revenue product per day of each additional worker? 2$ b. Assuming the restaurant is using its resources in a profit-maximizing way, and that each worker works 5 days each week, what is the current weekly wage rate in the labor market? 2$ per week

Suppose a campus restaurant increases the number of workers it hires from 3 workers per day to 7 workers per day. As a result, its total revenue increases from $135 per day to $350 per day. Instructions: Enter your answers rounded to two decimal places. a. Assuming that each worker is equally productive, what is the marginal revenue product per day of each additional worker? 2$ b. Assuming the restaurant is using its resources in a profit-maximizing way, and that each worker works 5 days each week, what is the current weekly wage rate in the labor market? 2$ per week

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 14E

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