Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 11, Problem 2SQP
(a)
To determine
Marginal revenue product of each worker.
(b)
To determine
The number of laborers hired.
(c)
To determine
The number of laborers hired.
(d)
To determine
The number of laborers hired.
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The Zippy Paper Company has no control over either the price of paper or the wage it pays itsworkers. The following table shows the relationship between the number of workers Zippy hiresand total output: Assuming the selling price is $10 per box, answer the following questions:a. What is the marginal revenue product (MRP) of each worker?b. How many workers will Zippy hire if the wage rate is $100 per day?c. How many workers will Zippy hire if the wage rate is $75 per day?d. Assume the wage rate is $75 per day and the price of a box of paper is $20. How manyworkers will Zippy hire?
labor input product output10 50011 600 12 690
13 760
14 800
Refer to the above table, answer the following questions:
A. If the price of the good produced is $7, what is the marginal revenue product (MRPL=11) of the 11th worker?
B. Suppose the price of the good sold is $10 and the marginal factor cost of labor(MFC) is $700, how many units of labor will the firm hire?
The following table shows the relationship between the number of workers employed and outputs at Jack’s Café.
Number of Workers
Cups of Coffee Produced
(per day)
1
50
2
95
3
135
4
170
5
200
6
225
Suppose the market price of each cup of coffee is $20, and the market daily wage for each worker is $800. In order to maximize profit, how many workers should Jack’s Café employ? Explain and show the steps of your calculations.
Chapter 11 Solutions
Micro Economics For Today
Ch. 11.3 - Prob. 1YTECh. 11 - Prob. 1SQPCh. 11 - Prob. 2SQPCh. 11 - Prob. 3SQPCh. 11 - Prob. 4SQPCh. 11 - Prob. 5SQPCh. 11 - Prob. 6SQPCh. 11 - Prob. 7SQPCh. 11 - Prob. 8SQPCh. 11 - Prob. 9SQP
Ch. 11 - Prob. 10SQPCh. 11 - Prob. 11SQPCh. 11 - Prob. 1SQCh. 11 - Prob. 2SQCh. 11 - Prob. 3SQCh. 11 - Prob. 4SQCh. 11 - Prob. 5SQCh. 11 - Prob. 6SQCh. 11 - Prob. 7SQCh. 11 - Prob. 8SQCh. 11 - Prob. 9SQCh. 11 - Prob. 10SQCh. 11 - Prob. 11SQCh. 11 - Prob. 12SQCh. 11 - Prob. 13SQCh. 11 - Prob. 14SQCh. 11 - Prob. 15SQCh. 11 - Prob. 16SQCh. 11 - Prob. 17SQCh. 11 - Prob. 18SQCh. 11 - Prob. 19SQCh. 11 - Prob. 20SQ
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- The Zippy Paper Company has no control over either the price of paper or the wage it pays its workers. The following table shows the relationship between the number of workers Zippy hires and total output: Labor Input (workers per day) Total Output (boxes of paper per day) 0 0 1 15 2 27 3 36 4 43 5 48 6 51 Assuming the selling price is $10 per box, answer the following questions: What is the marginal revenue product (MRP) of each worker? How many workers will Zippy hire if the wage rate is $100 per day? How many workers will Zippy hire if the wage rate is $75 per day? Assume the wage rate is $75 per day and the price of a box of paper is $20. How many workers will Zippy hire?arrow_forwardUse the table below. Marginal Total Total Marginal Product revenue Workers Produce Revesue per Product Price (5) product per (Output) hours ($) hour 2,50 25 25 2.50 63 62.50 36 11 2.50 90 27.50 45 2.50 113 22.50 50 2.50 125 12.50 55 is 2.50 138 12.50 How many workers would the firm hire if it were required to pay a wage of $25 per hour? O 2 3. Osarrow_forwardThe following table shows the total output each week of workers on a perfectly competitive cherry farm. The equilibrium price of a pound of cherries is $4. Complete the Marginal Product of Labor and the Marginal Revenue Product of Labor columns in the table. Then, using the table, answer the following questions. How many workers will the farmer hire if the equilibrium wage rate is: a. $550 per week? b. $650 per week? Quantity of Labor Marginal Product of Labor Value of Marginal Product of Labor Total Output 1 250 250 1000 600 350 1400 3 900 300 1200 4 1,125 1,300 1,450 1,560 225 900 175 700 150 600 7 110 440arrow_forward
- Martin's Magical Milk Farm produces cow's milk and sells it to a local store for $2.20 per gallon. Agricultural workers in the area are paid a fixed wage rate of $90 per day. Use this information and the information in the table below to answer the questions that follow. What is the marginal product of labour for employing a third worker? What is the value of marginal product of labour for employing a sixth worker? $ Workers 0 1 2 3 4 5 6 Quantity of Milk per day(gallons) 0 70 130 180 220 240 250 Unitsarrow_forwardThe following table shows the production function for a company. This company sells its product in a perfectly competitive product market at a price of $4 each and hire labor in a perfectly competitive labor market at a wage of $450 per week. Calculate the Marginal MarginalProduct of the 1st, 2nd, and 3rd. Calculate the Value ofMarginal Product of the 1st, 2nd, and 3rd How many workers should it hire? How do you know? Explain your answer. Show formulas and some of your calculations.arrow_forwardUsing the figure below, if Company X hires 12 workers what will their marginal product be? 15 10 5 1 4 8 12 16 Labor Provide your answer below: MP1 Marginal Product (MP,)arrow_forward
- Complete the following labor demand table for a firm that is hiring labor competitively and selling its product in a competitive market. (Submit your answer as an Excel file using the table on the right or as a text file that presents your answers in a format similar to the table below). Units of Total Marginal Product Total Marginal Labor Product Product Price Revenue Revenue $2 a. How many workers will the firm hire if the market wage rate is $27.95? $19.95? Explain why the firm will not hire a larger or smaller number of units of labor at each of these wage rates. 1 17 2 2 31 2 43 2 4 53 Units of Labor Product Product Marginal Revenue Total Marglnal Product Total Price Revenue Product 5 60 2 $2 17 6 65 2 31 3 43 4 53 2 60 6 65 2arrow_forwardno handwritten notesarrow_forwardHigh Tech, Inc. produces plastic chairs that sell for $10 each. The following table provides information about how many plastic chairs can be produced per hour. Number of Workers Chairs Produced per Hour 1 10 2 18 3 24 4 28 5 30 Please enter your answers for Value of the Marginal Product as numerical answers rounded to the nearest dollar (ie. 30 or $30, not "Thirty dollars." When answering how many workers the firm will hire just enter a number from 0-5 and nothing else (ie. 4 not "Four" or "Four workers"). What is the "Value of the Marginal Product" (VMP) for the third worker? What is the Value of the Marginal Product (VMP) for the fifth worker? How many workers will this firm hire if the hourly wage rate for workers is $70/hour How many workers will this firm hire if the hourly wage rate for workers is $50/hourarrow_forward
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