Suppose a campus restaurant increases the number of workers it hires from 2 workers per day to 4 workers per day. As a result, its total revenue increases from $90 per day to $200 per day. Instructions: Enter your answers rounded to two decimal places. a. Assuming that each worker is equally productive, what is the marginal revenue product per day of each additional worker? 2$ b. Assuming the restaurant is using its resources in a profit-maximizing way, and that each worker works 5 days each week, what is the current weekly wage rate in the labor market? 2$ per week

Suppose a campus restaurant increases the number of workers it hires from 2 workers per day to 4 workers per day. As a result, its total revenue increases from $90 per day to $200 per day. Instructions: Enter your answers rounded to two decimal places. a. Assuming that each worker is equally productive, what is the marginal revenue product per day of each additional worker? 2$ b. Assuming the restaurant is using its resources in a profit-maximizing way, and that each worker works 5 days each week, what is the current weekly wage rate in the labor market? 2$ per week

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.5P

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Suppose a campus restaurant increases the number of workers it hires from 3 workers per day to 11 workers per day. As a result, its total revenue increases from $135 per day to $550 per day. a. Assuming that each worker is equally productive, what is the marginal revenue product per day of each additional worker? $ b. Assuming the restaurant is using its resources in a profit-maximizing way, and that each worker works 5 days each week, what is the current weekly wage rate in the labor market? $ per week
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