Principles of Microeconomics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165905
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 19, Problem 3CQQ
To determine
Example of efficiency wages.
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Cindy is a baker and runs a large cupcake shop. She has already hired 11 employees and is thinking of hiring a 12th. Cindy estimates that a 12th worker would cost her $100 per day in wages and benefits while increasing her total revenue from $2,600 per day to $2,750 per day. Should Cindy hire a 12th worker? a. Yes. b. No. c. You need more information to figure this out.
Greg is running an economic consulting company with three employees. He is considering hiring more employees. The going salary for economic consultants with the skills the company needs is $118,000 per year. Each new employee will need a computer and other equipment that cost $3,000 per year. Each client pays the company $30,000 per year. The table shows how the number of clients depends on the number of employees. What is the company's marginal revenue from the first additional employee? ($)
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Cindy is a baker and runs a large cupcake
shop. She has already hired 11 employees and
is thinking of hiring a 12th. Cindy estimates that
a 12th worker would cost her $100 per day in
wages and benefits while increasing her total
revenue from $2,600 per day to $2,750 per
day. Should Cindy hire a 12th worker?
1. Yes.
2. No.
3. You need more information to figure this
out.
Chapter 19 Solutions
Principles of Microeconomics, 7th Edition (MindTap Course List)
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