Economics: Principles & Policy
14th Edition
ISBN: 9781337912679
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning US
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Question
Chapter 19, Problem 1TY
(a)
To determine
Calculate the marginal physical product.
(b)
To determine
Calculate the marginal revenue product when the price of pizza is $9.
(c)
To determine
Number of chefs employed.
(d)
To determine
Demand for the chef.
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Students have asked these similar questions
The following table shows the number of pizzas that can be produced by a large pizza parlor employing various numbers of pizza chefs.
Number of Chefs Number of Pizzas per Day
1 40
2 64
3 82
4 92
5 100
6 92
Find the marginal physical product schedule of the pizza chefs.
Assuming a price of $9 per pizza, find the marginal revenue product schedule.
If chefs are paid $100 per day, how many chefs will this pizza parlor employ? How would your answer…
At the local Wendy's franchise, the hourly wage is $9 per worker. The franchise employs 15 workers per hour, and the marginal product of labor is 3 burgers per hour. The price of each burger is $3.50. Is the franchise maximizing profit? If not, would it increase profit by employing more workers or fewer workers? Briefly explain your answer.
Stephanie produces earrings. She sells each pair of earrings for $5. The table below shows how many pairs of earrings can be
produced, depending on the number of workers Stephanie hires. Fill in the "Total Revenue" and "Marginal Revenue Product" columns
using the information given. Assume this is a perfectly competitive market.
Instructions: Enter your answers as a whole number.
Stephanie's Earring Shop and Revenues
Labor
Total Product (pairs of
(workers)
8
1
2
3
4
5
6
7
earrings)
0
28
44
58
71
82
90
95
Marginal Product
(pairs of earrings)
28
16
14
13
11
8
5
Price
(dollars)
$5
5
5
5
5
5
5
5
Total Revenue
(dollars)
$0
Marginal Revenue
Product (dollars)
$
Chapter 19 Solutions
Economics: Principles & Policy
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