You own a small sandwich shop with two employees. They've asked you to consider hiring additional workers for the lunch shift, but you are concerned that doing so may cut into you're profits. Using the table below, calculate the marginal product, value of marginal product, and marginal profit of hiring additional workers. What action should you take (choose one) A. Hire two more employees B. Hit one more employee C. Fire one employee D. Do not hire anyone

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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You own a small sandwich shop with two employees. They've asked you to consider hiring additional workers for the lunch shift, but you are concerned that doing so may cut into you're profits. Using the table below, calculate the marginal product, value of marginal product, and marginal profit of hiring additional workers. What action should you take (choose one) A. Hire two more employees B. Hit one more employee C. Fire one employee D. Do not hire anyone
Quantity
of labor
(workers)
int)
2
3
4
Number of
sandwiches
80
120
130
125
Marginal
Product
(MP)
80
40
Price of
Sandwiches
$6
$6
$6
$6
$
Value of
Marginal
Product
(VMP)
$480
$240
Wage
$25
$25
$25
$25
Marginal
Profit
$455
$215
Transcribed Image Text:Quantity of labor (workers) int) 2 3 4 Number of sandwiches 80 120 130 125 Marginal Product (MP) 80 40 Price of Sandwiches $6 $6 $6 $6 $ Value of Marginal Product (VMP) $480 $240 Wage $25 $25 $25 $25 Marginal Profit $455 $215
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