A firm sells bagels for £0.51 each. With 6 workers the firm produces 42 dozen per hour, and with 7 workers it produces 53 dozen per hour.   (a) To within two decimal places, the marginal revenue product of labor is £  .   (b) Assume an 8-hour shift per worker and the labour market is perfectly competitive. To within two decimal places, the market hourly wage rate is £ .

Managerial Economics: A Problem Solving Approach
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ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter2: The One Lesson Of Business
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A firm sells bagels for £0.51 each. With 6 workers the firm produces 42 dozen per hour, and with 7 workers it produces 53 dozen per hour.

 

(a) To within two decimal places, the marginal revenue product of labor is £  .

 

(b) Assume an 8-hour shift per worker and the labour market is perfectly competitive. To within two decimal places, the market hourly wage rate is £ .

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