Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 10, Problem 5.2P
(a)
To determine
Complete the table.
(b)
To determine
Profit maximizing output.
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Stephanie is looking to hire workers to help her produce earrings. The current hourly market wage rate is $10 per worker. Assume this
is a perfectly competitive market.
Instructions: Enter your answers as a whole number.
a. Fill in the "Total Labor Cost" and "Marginal Resource Cost" columns in the table below.
Stephanie's Resource Costs
Labor
(workers)
0
1
2
3
4
5
6
7
$10
b. Graph the marginal resource cost of labor (MRC) for Stephanie's business.
Instructions: Use the tool provided 'MRC' to plot the line point by point, starting from 1 worker up to 7 workers (7 points total).
Wage Rate (dollars per hour)
$12
$8
$6
Total Labor Cost
(dollars per hour)
$0
$4
$2
Marginal Resource Cost
Marginal Resource Cost
(dollars per hour)
$
Tools
/
MRC
Stephanie is looking to hire workers to help her produce earrings. The current hourly market wage rate is $10 per worker. Assume this is a perfectly competitive market. Instructions: Enter your answers as a whole number. a. Fill in the “Total Labor Cost” and “Marginal Resource Cost” columns in the table below. Stephanie's Resource Costs Labor (workers) Total Labor Cost (dollars per hour) Marginal Resource Cost (dollars per hour) 0 $0 — 1 $ 2 3 4 5 6 7 b. Graph the marginal resource cost of labor (MRC) for Stephanie's business. Instructions: Use the tool provided "MRC" to plot the line point by point, starting from 1 worker up to 7 workers
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
Stephanie produces earrings. She sells each pair of earrings for $5. The table below shows how many pairs of earrings can be
produced, depending on the number of workers Stephanie hires. Fill in the "Total Revenue" and "Marginal Revenue Product" columns
using the information given. Assume this is a perfectly competitive market.
Instructions: Enter your answers as a whole number.
Stephanie's Earring Shop and Revenues
Labor
Total Product (pairs of
(workers)
8
1
2
3
4
5
6
7
earrings)
0
28
44
58
71
82
90
95
Marginal Product
(pairs of earrings)
28
16
14
13
11
8
5
Price
(dollars)
$5
5
5
5
5
5
5
5
Total Revenue
(dollars)
$0
Marginal Revenue
Product (dollars)
$
Chapter 10 Solutions
Principles of Economics (12th Edition)
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