Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

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?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92758028

Have any Question?


Related Questions in Microeconomics

Question since the pound sterling devalued in 1993 it has

Question: Since the pound sterling devalued in 1993, it has changed very little relative to the Dmark and its successor, the e. At the same time, the inflation rate in the UK, which used to be about 5% per year higher th ...

Question - suppose that a consumer cannot vary hours of

Question - Suppose that a consumer cannot vary hours of work as he or she chooses. In particular, he or she must choose between working q hours and not working at all, where q >0. Suppose that dividend income is zero, an ...

Question despite airport precautions x hijacked an airplane

Question: Despite airport precautions, X hijacked an airplane in Chicago and forced the pilot, crew, and passengers to fly to New York. Upon reaching New York, X shot the pilot before giving up and surrendering to the Ne ...

Question - consider the consumer choice example where

Question - Consider the consumer choice example, where consumption and leisure are perfect complements. Assume that the consumer always desires a consumption bundle where the quantities of consumption and leisure are equ ...

Question write a paper describing the benefits of setting

Question: Write a paper describing the benefits of setting up a pricing structure which includes price discrimination. Then select one product line and describes the benefits and costs of setting up a pricing structure w ...

Question describe complexity economics in detail what do

Question: Describe complexity economics in detail. What do you see as the strengths and weaknesses of this approach to macroeconomics? Explain your answer fully. The response must be typed, single spaced, must be in time ...

Question several times in the last century the uk decided

Question: Several times in the last century, the UK decided to set the value of the £ above its equilibrium value. In terms of the Mundell-Fleming model, this means the value of the currency was set above the point where ...

Question read the you be the judge on p 596 of the text it

Question: Read the "You Be the Judge" on p. 596 of the text. It is the case of Banta Properties v. Arch Specialty Insurance. Review the facts, and the arguments of each party in the case. Discuss: 1. the main issue(s) in ...

Question microeconomic theory argues that it economically

Question: Microeconomic theory argues that it economically rationale (and profitable) to sell additional output as long as the price covers the variable costs of production. How is this relevant to the determination of w ...

Assignment pay discriminationwhy do women earn less than

Assignment: Pay Discrimination Why do women earn less than men? In this assignment you will look at the data on women's and men's pay, and explore reasons for the pay differential. Respond to the 3 key questions below. W ...

  • 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

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved