A bakery operating in competitive markets sells itsoutput for $20 per cake and pays workers $10 perhour. To maximize profit, it should hire workers untilthe marginal product of labor isa. 1/2 cake per hour.b. 2 cakes per hour.c. 10 cakes per hour.d. 15 cakes per hour.
A bakery operating in competitive markets sells itsoutput for $20 per cake and pays workers $10 perhour. To maximize profit, it should hire workers untilthe marginal product of labor isa. 1/2 cake per hour.b. 2 cakes per hour.c. 10 cakes per hour.d. 15 cakes per hour.
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 3QCMC
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Question
A bakery operating in competitive markets sells its
output for $20 per cake and pays workers $10 per
hour. To maximize profit, it should hire workers until
the marginal product of labor is
a. 1/2 cake per hour.
b. 2 cakes per hour.
c. 10 cakes per hour.
d. 15 cakes per hour.
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