Based on information provided in my scenario illustrate, Ask an Expert

Economics

Q. Elucidates marginal product of labour and diminishing marginal product. Let's assume your company makes widgets and you have clients that buy 1,000 of se widgets per day. An employee can make an average of 70 widgets per eight hours. se widgets cost company $10 dollars in materials each to make. Widgets are sold to customers for $15 dollars each.

You must pay employees minimum wage and right now minimum wage is $7.25 in many states. Our reading assignment in Chapter 18 says companies will hire workers up to point where value of marginal product of labour equals way. Based on information provided in my scenario, Illustrate what is value of marginal product? How many employees should you hire? Illustrate what wage should you set for your widget making employees?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9292946

Have any Question?

Related Questions in Business Economics

Consider the following cournot oligopolythere are two

Consider the following Cournot oligopoly: There are two identical firms in the industry, which set their quantities produced simultaneously. The two firms face a market demand curve, Q = 120 - P, in which Q = q1 + q2. Ea ...

Suppose that 1 of the employees of a certain company use

Suppose that 1% of the employees of a certain company use illegal drugs. This company performs random drug tests that return positive results 99% of the time if the person is a drug use. However, it also has a 2% false p ...

How does a high-tech industry differ from most other

How does a high-tech industry differ from most other industries? Provide two examples.

A car rental agency currently has 50 cars available 14 of

A car rental agency currently has 50 cars available, 14 of which has a GPS navigation system. One of the 50 cars were selected at random. To find the probability that a car selected randomly has a GPS navigation system a ...

What should ngos non-governmental organization do in

What should NGOs (non-governmental organization) do in regions of conflict or war? The benefits of having NGO's personnel in such regions outweigh the risks?

In lecture we discussed why the production possibilities

In lecture we discussed why the production possibilities frontier (the boundary of the production possibilities set) is bowed 'outwards'. When might the production possibilities set be bowed 'inwards'? Give an example of ...

In an inquiry into the nature and causes of the wealth of

In an inquiry into the nature and causes of the wealth of nations, Adam Smith listed three reasons for productivity to increase with specialization. What are these three reasons?

Suppose an industry that has n1 2 firms each with a supply

Suppose an industry that has n1 = 2 firms each with a supply curve S1(p) = 2p-8, and n2 = 4 firms each with a supply curve S2(p) = p-2. Construct the industry supply curve and plot it on a graph.

A if the required reserve ratio is 250 percent what is the

a. If the required reserve ratio is 2.50 percent, what is the monetary multiplier b. If the monetary multiplier is 5, what is the required reserve ratio?

Let x y z be independent discrete random variableslet a xyz

Let X, Y, Z, be independent discrete random variables. Let A= X(Y+Z) and B= XY With A, B, X, defined as before, determine wheter the folllowing statements are true or false. 1. A and B are independent 2. A and B are cond ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert