The output of bakers at The Cheesecake Palace depends on the number of bakers employed. The factory sells its cheesetake in a competitive product market at a price of P- $S. The daily wage af bakers is S600. Fill in the MP and MRP, columns in the table below: Total Bakers MP Output MRP. 1 B60 1160 4 1400 1560 1640 1680 1610 Question A Diminishing margirnal relurns begirs wih which wurker ? Question B Huw many bakers shuuld Lhe manager enoluy lo maxirnize profits?

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Labor Markets And Income Distribution
Section: Chapter Questions
Problem 3SQP
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4.

The output of bakers at The Cheesecake Palace depends on the number of bakers employed. The factory sells its cheesecake in a cormpetitive product market at a price of P- $5. The daily wage of bakers is $600. Fill in the MP and MRP columns in the table
below:
Total
Bakers
Output
MP
MRP
1
500
B60
1160
4
1400
1560
1640
1680
1610
Question A
Diminishirg marginal relurs begins with which worker?
Question B
Huw many bakers shuuld Lhe manager empluy lo maximize profils?
Question C
Cakulale the lulal wage bill for the firm al Lhe prufil-rmaxirnizing oulpul level. $
Question D
Huw much prufil dues Lihe firm earn al he profil-maximizing oulpul level? $
Transcribed Image Text:The output of bakers at The Cheesecake Palace depends on the number of bakers employed. The factory sells its cheesecake in a cormpetitive product market at a price of P- $5. The daily wage of bakers is $600. Fill in the MP and MRP columns in the table below: Total Bakers Output MP MRP 1 500 B60 1160 4 1400 1560 1640 1680 1610 Question A Diminishirg marginal relurs begins with which worker? Question B Huw many bakers shuuld Lhe manager empluy lo maximize profils? Question C Cakulale the lulal wage bill for the firm al Lhe prufil-rmaxirnizing oulpul level. $ Question D Huw much prufil dues Lihe firm earn al he profil-maximizing oulpul level? $
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