How many workers should ms smith hire

Assignment Help Microeconomics
Reference no: EM13126994

Ms. Smith, the owner and manager of the Clear Duplicating Service located near a major university, is contemplating keeping her shop open after 4 p.m. and until midnight.  In order to do so, she would have to hire additional workers.  She estimates that the additional workers would generate the following total output (where each unit of output refers to 100 pages duplicated).  If the price of each unit of output is $10 and each worker hired must be paid $40 per day, how many workers should Ms. Smith hire? (Ms. Smith should hire workers as long as their marginal revenue product (MRP) exceeds their marginal resource cost (MRC), and until MRP=MRC. MRP=MRxMP=PxMP=$10xMP use the information in the problem to calculate MP) MRC=wages=$40.

Reference no: EM13126994

Questions Cloud

Identify the limiting reagent : The equation for the complete combustion of ethene (C2H4) is C2H4(g) + 3 O2(g) ==> 2CO2(g) + 2H2O(g) If 2.70 mol C2H4 is reacted with 6.30 mole O2,
Does the production function exhibit diminishing returns : Show the change in Q if L changes from 1 to 2, and 2 to 3, and does the production function exhibit diminishing returns? If so, when does the law of diminishing returns begin to operate? Could we ever get negative returns?
The rate constant increases by a factor : The rate constant increases by a factor of 2.00 when the temperature is increased from 80 C to 115 C. estimate the arrhenius activation energy.
Enacted tax rate-current and future periods : The enacted tax rate is 25% in current and future periods. What will White record as its income tax expense in Year 1?
How many workers should ms smith hire : how many workers should Ms. Smith hire? (Ms. Smith should hire workers as long as their marginal revenue product (MRP) exceeds their marginal resource cost
What is the volume in liters of ethylene glycol : Ethylene glycol, antifreeze, has a density of 1.11 g/cm^3.a. What is the mass, in grams, of 410 mL of ethylene glycol?
Calculate the mass of ice : Consider a glass of 254 mL of water at 25°C. Calculate the mass of ice at -15°C that must be added to cool the water to 10°C after thermal equilibrium is achieved.
Direct-mapped cache : Assuming a direct-mapped cache with 16 one-word blocks that is initially empty, label each reference in the list as a hit or a miss and show the final contents of the cache.
Calculate the dhreaction in kj/mol metal : The reaction of 0.130 moles of a metal with an acidic aqueous solution in a calibrated calorimeter causes the temperature to increase by 49.0°C.

Reviews

Write a Review

Microeconomics Questions & Answers

  Interaction of fiscal and monetary policy

Intelligent fiscal policy and appropriate monetary policy permit for a stabilizing influence on US economy. The government is able to make action through expansionary or contractionary fiscal policy to manage recession and inflation when necessary.

  Calculate the long-run equilibrium values

What happens to equilibrium output and the equilibrium interest rate in the short-run, and equilibrium output and theequilibrium price level in the long-run.

  Which industry is labor intensive

Give the percentage change in the rental on capital and percentage change in wage and compare the magnitude of the percentage in the rental on capital with percentage change in wage in part (b). Use notational format.

  Economy from one long run macroeconomic equilibruium

Using aggregate demand, short run aggregate supply, and long run aggregate supply curves, describe the process through which each government policies will move economy from one long run macroeconomic equilibruium to another.

  Determining cross price elasticity of demand

Describe why the results of computing cross-price elasticity can be useful in determining product relationships. In your explanation, contrast the different numerical values of cross-price elasticity and what each value indicates.

  Supply and demand diagrams

Describe each of the subsequent using supply and demand diagrams.

  What are the consequences for farm output

What are the consequences for farm output as a result of this guaranteed price and what does the term "equilibrium" mean in the context of a market economy?

  Determine firm profit-maximizing output

Suppose that perfectly competitive firm faces the market price (P) $5 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an output (Q) level of 1,500 units.

  What is the opportunity cost of working

What is the opportunity cost of working at the internship and it is unreasonable that companies must pay an average of $15,000 per year to provide health insurance for an employee and their family.

  Statistically significant regression coefficient

Determine which of the following is most likely to indicate statistically significant regression coefficient? Assume the price elasticity of the supply of cheese is 0.80. If the price of cheese rises by .20 percent,

  Analyzing disneyland stocks

Assume you are a stock market analyst specializing in the stocks of theme parks, and you are analyzing Disneyland's stocks. The Wall Street Journal reports that tourism has slowed down in the US.

  Effect of length of new patents extension

Do you think the overall level of R&D would increase or reduce over the next 20 to 30 years if lengths of new patents were extended from 20 years to, say "forever"?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd