A bakery producing bread reports the following production information:
# Workers Total Product
(loaves of bread per hour)
0 0
1 35
2 65
3 85
4 100
5 110
The bread sells in a competitive market at a price of $0.30 each. The firm hires workers in a competitive labor market at a wage of $7 per hour. How many workers should the firm hire? Explain your answer.
The firm should hire two workers. The marginal revenue product of the second worker is $9 (30 x $0.30), which is greater than the wage of $7 . However, the marginal revenue product of the third worker is only $6 (20 x $0.30), which is less than the wage.
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In the above figure, the firm is breaking even at points
A) a and c. B) b and d. C) c and d. D) a and d.
The first credit card was issued in
A) 1950 by Francis X. McNamara. B) 1958 by Bank of America. C) 1981 by James Tobin. D) 1974 by Citibank.
If the federal government began granting a subsidy of 10 cents per apple to apple growers and as a result the price of apples to consumers falls by 8 cents,
a. the actual benefit of this subsidy goes mostly to consumers. b. the actual benefit of this subsidy goes mostly to producers. c. the actual benefit of this subsidy would be shared equally by producers and consumers. d. nobody would benefit from the subsidy.
Brittany decides to save $50 from each paycheck so that she can go on a Spring Break trip with her college roommates. However, when she gets paid this week, she spends all of her money on new clothes. Which of the following insights into human behavior does Brittany exhibit?
a. People are overconfident. b. People care about fairness. c. People are reluctant to change their minds. d. People are inconsistent over time.