Answered: How much is the marginal revenue of the…

How much is the marginal revenue of the product of labor if the price of the product (P) is $ 12 and the marginal product of labor (MPL) is 8? Response option group a) $ 12 b) $ 96 c) $ 450 d) $ 384

Managerial Economics: A Problem Solving Approach

5th Edition

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

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 6MC

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A bakery is located just up the road from Jane’s home. On Saturday mornings, she, like many others, buys her bread there. Saturday morning, predictably, is the busiest time of the week for the store, which necessitates the hiring of additional employees.On weekdays, only one assistant provides services to the customers. But because of the busy scheduling on Saturdays, five assistants are brought in to assist. The problem is the additional five are not able to serve five times as many customers. Labour is faced with diminishing return and some factors of production in the bakery shop are fixed.The shop size is fixed. Saturday mornings at the shop is terrible for customers because of overcrowding. Assistants sometimes had to wait while customers squeezed past each other to get to the counter. The five assistants get in each other’s way as they try hard to reduce the pressure and run smooth services delivery.The pay point is only one. Ordered delivery also wastes time.The bread is very…
A bakery is located just up the road from Jane’s home. On Saturday mornings, she, like many others, buys her bread there. Saturday morning, predictably, is the busiest time of the week for the store, which necessitates the hiring of additional employees. On weekdays, only one assistant provides services to the customers. But because of the busy scheduling on Saturdays, five assistants are brought in to assist. The problem is the additional five are not able to serve five times as many customers. Labour is faced with diminishing return and some factors of production in the bakery shop are fixed.The shop size is fixed. Saturday mornings at the shop is terrible for customers because of overcrowding. Assistants sometimes had to wait while customers squeezed past each other to get to the counter. The five assistants get in each other’s way as they try hard to reduce the pressure and run smooth services.The pay point is only one. Ordered delivery also wastes.The bread is very nice, and…
A bakery is located just up the road from Jane’s home. On Saturday mornings, she, like many others, buys her bread there. Saturday morning, predictably, is the busiest time of the week for the store, which necessitates the hiring of additional employees.On weekdays, only one assistant provides services to the customers. But because of the busy scheduling on Saturdays, five assistants are brought in to assist. The problem is the additional five are not able to serve five times as many customers. Labour is faced with diminishing return and some factors of production in the bakery shop are fixed.The shop size is fixed. Saturday mornings at the shop is terrible for customers because of overcrowding. Assistants sometimes had to wait while customers squeezed past each other to get to the counter. The five assistants get in each other’s way as they try hard to reduce the pressure and run smooth services.The pay point is only one. Ordered delivery also wastesThe bread is very nice, and…