The table below shows the short run production function for Corey's Card Store. Number of workers 1 2 3 4 5 6 7 8 Total product per hour 3 7 12 16 19 21 22 20 A. After which worker do diminishing marginal returns begin for Corey's Card Shop? Explain using numbers. B. Assume Corey's Card Shop produces and sells greeting cards in a perfectly competitive market at a unit price of $9. Calculate the marginal revenue product of the 6th worker. Show your work. C. Corey's Card Shop hires labor in a perfectly competitive labor market for clerks at a wage of $25/hour and the market price of greeting cards remains $9. How many workers will Corey's Card Shop hire to maximize its profits? Explain using marginal analysis.
The table below shows the short run production function for Corey's Card Store. Number of workers 1 2 3 4 5 6 7 8 Total product per hour 3 7 12 16 19 21 22 20 A. After which worker do diminishing marginal returns begin for Corey's Card Shop? Explain using numbers. B. Assume Corey's Card Shop produces and sells greeting cards in a perfectly competitive market at a unit price of $9. Calculate the marginal revenue product of the 6th worker. Show your work. C. Corey's Card Shop hires labor in a perfectly competitive labor market for clerks at a wage of $25/hour and the market price of greeting cards remains $9. How many workers will Corey's Card Shop hire to maximize its profits? Explain using marginal analysis.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 4PA
Related questions
Question
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
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax