Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

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.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9743828

Have any Question?


Related Questions in Microeconomics

Question explain the logic of another classic movie stanley

Question: Explain the logic of another classic movie, Stanley Kubrick's Dr. Strangelove. At the beginning of the movie, which is set during the Cold War, the audience learns that the Soviet Union has built a doomsday mac ...

Question an economist wants to know what fraction of

Question: An economist wants to know what fraction of workers in a factory sometimes smoke marijuana on the job. She collects a random sample of 100 workers. To allay their fears she conducts the investigation indirectly ...

Question historically the value of the dollar has increased

Question: Historically, the value of the dollar has increased when the price of oil has risen, and declined when the price of oil has fallen. Explain why this has occurred, taking into account the fact that the US import ...

Assignment 2 writing assignment costs and revenues

Assignment 2: Writing Assignment: Costs and Revenues Structures If viewing this through the Assignment tool, click the title above to go to the Submissions area. This assignment will enable you to: Create tables to illus ...

Task research and write a business report that addresses

Task: Research and Write a Business Report that Addresses the Question: ‘How Ethical are Major Internet Companies?' Methodology: Write a Business report with the following report headings and content: ‘Introduction' o Br ...

Question an equipment costs 800000 and has a service-life

Question: An equipment costs $800,000 and has a service-life of 10 years with a salvage value of $20,000. The equipment will bring a before tax income of $200,000 every year. Annual operations and maintenance will be $10 ...

Question draw the offer curves for nation 1 and nation 2

Question: Draw the offer curves for Nation 1 and Nation 2, showing that Nation 2 is a small nation that trades at the pretrade-relative commodity prices in Nation 1. How are the gains from trade distributed between the t ...

Question there are analogies between the value of a piece

Question: There are analogies between the value of a piece of land and that of a perpetuity. Assume that the land generates a fixed net income per year, i.e., the value of the crop it produces less the costs of productio ...

Question according to many sources such as the us census

Question: According to many sources, such as the U.S. Census Bureau, Global Issues, and the Joint Center for Poverty Research, the United States has a widening gap between the rich and the poor. Some say that such measur ...

Question ge marine systems is planning to supply a japanese

Question: GE Marine Systems is planning to supply a Japanese shipbuilder with aero-derivative gasturbines to power 11 DD-class destroyers for the Japanese Self-Defense Force. The buyercan pay the total contract price of ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As