What would be the new employees marginal product of labor

Reference no: EM131919365

Problem

Recently, some college alumni started a moving service for students living on campus. They have three employees and are debating hiring a fourth. The hourly wage for an employee is $18 per hour. An average moving job takes three hours. The company currently does three moving jobs per week, but with one more employee, the company could manage five jobs per week. The company charges $80 for a moving job.

a. What would be the new employee's marginal product of labor?

b. What is the value of that marginal product?

c. Should the moving service hire a fourth worker?

Reference no: EM131919365

Questions Cloud

Proportion of debt financing : The remainder will be financed by debt. What is the proportion of debt financing for use in the WACC calculation? Round to two decimals

How should the pre-embryos be handled : How should the pre-embryos be handled? And what is your reaction to the way the Tennessee Supreme Court handled this case?

Discuss indifference point between the two processes : A small manufacturer that produces outdoor furniture is considering increasing the automation on the production line that makes its most popular metal patio.

What is the cost of internal common equity : What is the cost of internal common equity (retained earnings) if the long-term growth in dividends is projected to be 5 percent indefinitely?

What would be the new employees marginal product of labor : What would be the new employee's marginal product of labor? What is the value of that marginal product? Should the moving service hire a fourth worker?

Would you adapt your product for local tastes : Would you adapt your product for local tastes or introduce a "global" product? Support your reasoning.

Company balance sheet amount in accounts receivable : Its accounts are, on average, four days past due. If annual credit sales are $9.75 million, what is the company's balance sheet amount in accounts receivable?

Explain whether manager will change policy to avoid walkout : One of friends suggests that they all agree to walk out if manager doesn't change her policy. Explain whether manager will change her policy to avoid a walkout.

Will industry finance factors llc be able to insist : Premier Contracting Corporation purchased some equipment from Capitol Equipment Inc. pursuant to a contract that contained warranties.

User Account

All Pages