Solve the following? Use the following data to work Problems 4 to 7.Kaiser's Ice Cream Parlour hires workers to produce milkshakes. The market formilkshakes is perfectly competitive, and the price of a milkshake is $4. The labourmarket is competitive, and the wage rate is $40 a day. The table shows the workers'total product schedule.Quantity producedworkers (milkshakes per day)7Number of213334351Calculate the marginal product of hiring thefourth worker and the fourth worker's value of4.55marginal product.How many workers will Kaiser's hire to maximize its profit and how manymilkshakes a day will Kaiser's produce?5.If the price of a milkshake rises to $5, how many workers will Kaiser's hire?7.6.Kaiser's installs a new machine for making milkshakes that increases theproductivity of workers by 50 percent. If the price of a milkshake remains at $4and the wage rises to $48 a day, how many workers does Kaiser's hire?456

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51 4. Calculate the marginal product of hiring the 6 55 fourth worker and the fourth worker's value of marginal product. How many workers will Kaiser's hire to maximize its profit and how many milkshakes a day will Kaiser's produce? If the price of a milkshake rises to $5, how many workers will Kaiser's hire? 5. 6.

51 4. Calculate the marginal product of hiring the 6 55 fourth worker and the fourth worker's value of marginal product. How many workers will Kaiser's hire to maximize its profit and how many milkshakes a day will Kaiser's produce? If the price of a milkshake rises to $5, how many workers will Kaiser's hire? 5. 6.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 7PA

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