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Suppose a campus restaurant increases the number of workers it hires from 4 workers per day to 10 workers per day. As a result, its total revenue increases from $180 per day to $500 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? 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? +A per week

Suppose a campus restaurant increases the number of workers it hires from 4 workers per day to 10 workers per day. As a result, its total revenue increases from $180 per day to $500 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? 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? +A per week

Principles of Microeconomics
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: The Markets For The Factor Of Production
Section: Chapter Questions
Problem 3CQQ
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Suppose a campus restaurant increases the number of workers it hires from 4 workers per day to 10 workers per day. As a result, its total revenue increases from $180 per day to $500 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? 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? +A per week
Transcribed Image Text:Suppose a campus restaurant increases the number of workers it hires from 4 workers per day to 10 workers per day. As a result, its total revenue increases from $180 per day to $500 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? 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? +A per week
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