The owner of a Colorado bakery is maximizing profit.←The price of a loaf of bread is $4.00, a bakery worker's wage rate is $8 an hour, and the bakery employs ten workers.What is the marginal product of the tenth bakery worker? If, when the price of a loaf of bread rises to $5.00, the bakery hires twelve workers, what is the marginal product of the twelfth worker?>>> Answer to 2 decimal places.When the price of a loaf of bread is $4.00, the marginal product of the tenth bakery worker is

To determine the marginal product of the tenth worker when the price of a loaf of bread is $4.00 and…

Answered: The owner of a Colorado bakery is…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 6P

See similar textbooks

Similar questions

If two painters can paint 200 square feet of wall in an hour, and three painters can paint 275 square feet, what is the marginal product of the third painter?
What is the difference between a fixed input and a variable input?
Would you consider an interest payment on a loan to a film an explicit or implicit cost?
The owner of a Colorado bakery is maximizing profit. K The price of a loaf of bread is $4.00, a bakery worker's wage rate is $8 an hour, and the bakery employs ten workers. What is the marginal product of the tenth bakery worker? If, when the price of a loaf of bread rises to $5.00, the bakery hires twelve workers, what is the marginal product of the twelfth worker? >>> Answer to 2 decimal places. When the price of a loaf of bread is $4.00, the marginal product of the tenth bakery worker is
Will decrea n he fong run, assume a firm uses both labor and capital to produce 25 units of output. The marginal product of the last unit of labor being employed is 100; the marginal product of the last unit of capital being employed is 500. The wage rate of labor is $10. If the firm is minimizing the cost of producing 25 units of output, what must be the unit price of capital?
Suppose you are considering hiring another worker. Also assume that you are at a firm that is operating at a point where the marginal product of labor is 5 and the price of each unit of labor is $2, and the marginal product of capital is 20 and the price of each unit of capital is $10. Should you hire another worker? If you hire another worker, what will happen to the marginal product of labor and why?
Terry’s Lawn Service rents five small push mowers and two large riding mowers to cut the lawns of neighborhood households. The marginal product of a small push mower is 3 lawns per day, and the marginal product of a large riding mower is 6 lawns per day. The rental price of a small push mower is $10 per day, whereas the rental price of a large riding mower is $25 per day. Is Terry’s Lawn Service utilizing small push mowers and large riding mowers in a cost-minimizing manner?
Complete the table by computing the marginal product for each worker. Labor Total Output (Number of workers) (Pizzas per day) UNITS OF OUTPUT 9 90 80 70 8909 50 40 330 20 CH 10 HH 0 0 1 0 2 1 2 3 4 5 6 7 8 On the following graph, plot Brian's total output using the green points (triangle symbol). (Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Be sure to plot the first point at (0, 0).) (?) 9 10 000 m2 58 8 3 18 30 43 55 65 73 79 82 80 4 5 6 NUMBER OF WORKERS 7 Marginal Product AAAAAAAAAA B 9 10 A Production Function
Suppose Fred produces 500 litres of milk every day with 10 workers. The price of milk is $12 per litre, and each worker is paid $550 daily. If the marginal product of the last worker employed is 40 litres of milk, explain whether Fred is maximizing his profit. If not, can Fred increase his profit by employing more or fewer workers? If Fred buys more dairy cattles, how will it affect his demand for labor? Explain with a diagram.
Prunella raises peaches where L is the number of units of labor she uses and T is the number of units of land she uses. Her output is f(L,T) = LT bushels of peaches. Currently, the cost of land is 8, the wage for labor is 9, and the price of peaches is 10. Prunella is currently maximizing her profits. Which occurences would cause the quantity of labor used to decrease? O An increase in the price of peaches O A increase in the price of labor O An increase in the Marginal Product of Labor O All of the above
Suppose that Tim runs his own lawn care service and that his firm is competitive in the lawn care industry. He has a fixed number of tools that can be used to maintain a yard, but he needs to determine the productivity gained from hiring various numbers of workers per week. Which of the following statements best represents the idea behind the marginal product of labor ( MPL )? When Tim hires more workers, he can mow more lawns per week, but at a decreasing rate. If Tim hires twice as many workers per week, he can mow twice as many lawns per week. If Tim buys one more lawn mower, he can mow 13 more lawns per week. If Tim hires an additional worker per week, he can mow 11 more lawns per week. The following graph portrays the weekly total product curve for lawn mowing given a fixed amount of capital and varying labor inputs. (Note: Each black point (plus symbol) represents a point on the total product curve.) 100 90 во 70 60 50 40 30 20 10 xxxx_ Total Product ° 0 1 2 4 5 7 8 10 LABOR…
suppose Fred produces 500 litres of milk every day with 10 workers. the price of milk is $12 per litre, and each worker is paid $550 daily. if th margin product of the last worker employed is 40 litres of milk, explain whether Fred is maximizing his profit. If not, can Fred incrase his profit by employing more or fewer workers? If Fred buys more dairy cattles, how will it affect his demand for labor? Explain with a diagram.

SEE MORE QUESTIONS

Recommended textbooks for you

Exploring Economics

Economics

ISBN:

9781544336329

Author:

Robert L. Sexton

Publisher:

SAGE Publications, Inc

ECON MICRO

Economics

ISBN:

9781337000536

Author:

William A. McEachern

Publisher:

Cengage Learning

Microeconomics: Principles & Policy

Economics

ISBN:

9781337794992

Author:

William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:

Cengage Learning

Exploring Economics

Economics

ISBN:

9781544336329

Author:

Robert L. Sexton

Publisher:

SAGE Publications, Inc

ECON MICRO

Economics

ISBN:

9781337000536

Author:

William A. McEachern

Publisher:

Cengage Learning

Microeconomics: Principles & Policy

Economics

ISBN:

9781337794992

Author:

William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:

Cengage Learning

Essentials of Economics (MindTap Course List)

Economics

ISBN:

9781337091992

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Microeconomics

Economics

ISBN:

9781337617406

Author:

Roger A. Arnold

Publisher:

Cengage Learning

Economics (MindTap Course List)

Economics

ISBN:

9781337617383

Author:

Roger A. Arnold

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS