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Micro 5.3-The Hiring Rule

Last updated 8 months ago

10 Nsɛmmisa

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The Barking Bakery produces dog treats. It is trying to decide how many bakers to hire. The table below provides data on total output as more workers are hired. As part of a perfectly competitive market, The Barking Bakery sells all of its dog treats at the price of $4.00 each.

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Asemmisa {{asɛmmisaAhyɛnsode}}

1.

What is the marginal physical product for the 5th worker?

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2.

What is the marginal revenue product of the third worker? ($##)

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3.

What is the marginal factor cost for the fifth worker? ($##)

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4.

How many workers will the firm hire?

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5.

How much profit will the firm make if it hires 2 workers? Consider that labor is the firm's only cost. ($##)

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6.

What is the total revenue of the firm when five workers are hired: ($##)

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7.

What is the marginal revenue product of the seventh worker? ($##)

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8.

What is the true value of the seventh worker to the firm?

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9.

How many workers will this firm hire if the market wage rate is $ 60?

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10.

How many workers will this firm hire if the market wage rate falls to $40? 😁