Suppose that a firm's only variable input is labor. The firm increases the number of employees from four to five, thereby causing the weekly output to rise by two units and total costs to increase from $3,000 per week to $3,300 per week. What is the marginal product of hiring five workers instead of four? What is the weekly wage rate earned by the fifth worker?
Suppose that a firm's only variable input is labor. The firm increases the number of employees from four to five, thereby causing the weekly output to rise by two units and total costs to increase from $3,000 per week to $3,300 per week. What is the marginal product of hiring five workers instead of four? What is the weekly wage rate earned by the fifth worker?
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 2SQ
Related questions
Question
Suppose that a firm's only variable input is labor. The firm increases the number of employees from four to five, thereby causing the weekly output to rise by two units and total costs to increase from $3,000 per week to $3,300 per week.
-
What is the marginal product of hiring five workers instead of four?
-
What is the weekly wage rate earned by the fifth worker?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
