Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 19, Problem 5IAPA
To determine
To explain:
Changes in value of marginal product of coders after 2007 and reason of it.
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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
The accompanying table describes the relationship between the number of workers hired by a call center each hour and the number of calls the call
center can make each hour. The call center has only 1 telephone. The telephone costs the firm $5/hour (regardless of how many calls are made), and
each worker is paid $10 per hour.
Calls Per Hour
Number of Telephones
Number of Workers Per Hour
1
1
2
1
4
6
1.
6
16
8
22
1.
10
24
12
Given the information in the table above, what is the call center's additional fixed cost when it goes from making 6 calls an hour to making 16 calls an
hour?
Multiple Choice
$30
$5
$0
Assume the Jacksonville Jaguars, a football team, are in the process of hiring players. The following hypothetical table of data gives the necessary
information to the manager to hire quarterbacks.
Salary
(Thousands of
dollars)
Number of
Quarterbacks
0
о
100 1
200
2
300
3
400
4
500
5
Total Cost of
Quarterbacks
(Thousands of
dollars)
Marginal Factor Cost
(MFC)
Marginal Revenue
Product (MRP)
(Thousands of
dollars)
(Thousands of dollars)
100
700
100
300
650
400
500
600
900
700
550
1,600
900
500
2,500
On the following graph, use orange points (square symbol) to plot the labor supply curve for quarterbacks, starting with point (1, 100). Next, use
green points (triangle symbol) to plot the marginal factor cost curve on the midpoints of the horizontal axis, starting with point (0.5, 100).
Note: Plot points from left to right in the order you would like them to appear. Points will connect automatically.
SALARY (Thousands of dollars)
1000
900
800
700
Labor Supply
600
MFC
MRP
500
400
300
200
100…
Chapter 19 Solutions
Foundations of Economics (8th Edition)
Ch. 19 - Prob. 1SPPACh. 19 - Prob. 2SPPACh. 19 - Prob. 3SPPACh. 19 - Prob. 4SPPACh. 19 - Prob. 5SPPACh. 19 - Prob. 6SPPACh. 19 - Prob. 7SPPACh. 19 - Prob. 8SPPACh. 19 - Prob. 9SPPACh. 19 - Prob. 10SPPA
Ch. 19 - Prob. 1IAPACh. 19 - Prob. 2IAPACh. 19 - Prob. 3IAPACh. 19 - Prob. 4IAPACh. 19 - Prob. 5IAPACh. 19 - Prob. 6IAPACh. 19 - Prob. 7IAPACh. 19 - Prob. 8IAPACh. 19 - Prob. 9IAPACh. 19 - Prob. 1MCQCh. 19 - Prob. 2MCQCh. 19 - Prob. 3MCQCh. 19 - Prob. 4MCQCh. 19 - Prob. 5MCQCh. 19 - Prob. 6MCQCh. 19 - Prob. 7MCQ
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