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Suppose a campus restaurant increases the number of workers it hires from 3 workers per day to 7 workers per day. As a result, its total revenue increases from $135 per day to $350 per day. Instructions: Enter your answers rounded to two decimal places. a. Assuming that each worker is equally productive, what is the marginal revenue product per day of each additional worker? 2$ 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 3 workers per day to 7 workers per day. As a result, its total revenue increases from $135 per day to $350 per day. Instructions: Enter your answers rounded to two decimal places. a. Assuming that each worker is equally productive, what is the marginal revenue product per day of each additional worker? 2$ 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

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter22: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 6CQ: Suppose that the development of a new drought-resistant hybrid seed corn leads to a 50 percent...
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Suppose a campus restaurant increases the number of workers it hires from 3 workers per day to 7 workers per day. As a result, its total revenue increases from $135 per day to $350 per day. Instructions: Enter your answers rounded to two decimal places. a. Assuming that each worker is equally productive, what is the marginal revenue product per day of each additional worker? 2$ 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? per week %24
Transcribed Image Text:Suppose a campus restaurant increases the number of workers it hires from 3 workers per day to 7 workers per day. As a result, its total revenue increases from $135 per day to $350 per day. Instructions: Enter your answers rounded to two decimal places. a. Assuming that each worker is equally productive, what is the marginal revenue product per day of each additional worker? 2$ 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? per week %24
After a campus pub increases its output from 3 kegs of beer per day to 11 kegs of beer per day, its total resource cost increases from $135 per day to $550 per day. Instructions: Enter your answers rounded to two decimal places. a. What is the marginal resource cost per day of the additional kegs? b. Assuming the pub is using its resources in a profit-maximizing way, what is the marginal revenue product per day of the additional kegs? %24
Transcribed Image Text:After a campus pub increases its output from 3 kegs of beer per day to 11 kegs of beer per day, its total resource cost increases from $135 per day to $550 per day. Instructions: Enter your answers rounded to two decimal places. a. What is the marginal resource cost per day of the additional kegs? b. Assuming the pub is using its resources in a profit-maximizing way, what is the marginal revenue product per day of the additional kegs? %24
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