You own a small sandwich shop with two employees. They've asked you to consider hiring additional workers for the lunch shift, but you are concerned that doing so may cut into you're profits. Using the table below, calculate the marginal product, value of marginal product, and marginal profit of hiring additional workers. What action should you take (choose one) A. Hire two more employees B. Hit one more employee C. Fire one employee D. Do not hire anyone
You own a small sandwich shop with two employees. They've asked you to consider hiring additional workers for the lunch shift, but you are concerned that doing so may cut into you're profits. Using the table below, calculate the marginal product, value of marginal product, and marginal profit of hiring additional workers. What action should you take (choose one) A. Hire two more employees B. Hit one more employee C. Fire one employee D. Do not hire anyone
Chapter12: Income Distribution, Poverty, And Discrimination
Section: Chapter Questions
Problem 9SQ
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Question
You own a small sandwich shop with two employees. They've asked you to consider hiring additional workers for the lunch shift, but you are concerned that doing so may cut into you're profits. Using the table below, calculate the marginal product, value of marginal product, and marginal profit of hiring additional workers.
What action should you take (choose one)
A. Hire two more employees
B. Hit one more employee
C. Fire one employee
D. Do not hire anyone
Transcribed Image Text:Quantity
of labor
(workers)
int)
2
3
4
Number of
sandwiches
80
120
130
125
Marginal
Product
(MP)
80
40
Price of
Sandwiches
$6
$6
$6
$6
$
Value of
Marginal
Product
(VMP)
$480
$240
Wage
$25
$25
$25
$25
Marginal
Profit
$455
$215
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