The price of the scarf is $9. The hourly wage is $24. Each scarfrequires $1 worth of material. Fill in the table below. What is theprofit-maximizing output?
Workers
10
11
12
13
14
15
Output
5
29
41
47
50
52
Labor cost
Material cost
Fixed cost
$2
2
2
2
2
2
Total cost
Marginal cost
The price of the scarf is $9. The hourly wage is $24. Each scarfrequires $1 worth of material. Fill in the table below. What is theprofit-maximizing output?
Workers | 10 | 11 | 12 | 13 | 14 | 15 |
Output | 5 | 29 | 41 | 47 | 50 | 52 |
Labor cost | ||||||
Material cost | ||||||
Fixed cost | $2 | 2 | 2 | 2 | 2 | 2 |
Total cost | ||||||
Marginal cost |
Related textbook solutions
Related questions
| First scenario: output price is given | ||||||||
| The table (below) gives the total output, per hour, for anywhere from 0 to 17 workers. | ||||||||
| You need to determine how many workers should be hired at five different wage rates, ranging from $13/hour up to $25/hour. The wage rate includes all relevant benefits. To get to this answer you will need to calculate the marginal product of labor and the marginal revenue product of labor. You will be entering the values you obtain for the boldy outlined celles into the Moodle submission area. | ||||||||
| Cost of the other (non-labor) inputs that go into a case (and would need to be increased if more labor was hired and output increased) = | $13.00 | |||||||
| Price received per case = | $15.00 | |||||||
| Marginal product of labor is the change in total product when labor is increased by one. | ||||||||
| Marginal Revenue Product (net of the cost of the other required inputs), when the output price is fixed) equals marginal product times the ((fixed) output price -$13) | ||||||||
| Please note: A few of the table values are filled in. Use these to determine if your approach to the problem is correct. | ||||||||
| Number of workers | Total product | Marginal product of labor | Marginal Revenue Product (net of the cost of the other required inputs) | |||||
| 0 | 0 | |||||||
| 1 | 10 | 10 | ||||||
| 2 | 21 | 11 | $22.00 | |||||
| 3 | 33 | 12 | $24.00 | |||||
| 4 | 46 | 13 | $26.00 | |||||
| 5 | 60 | 14 | $27.00 | |||||
| 6 | 75 | 15 | $30.00 | |||||
| 7 | 91 | 16 | $32.00 | |||||
| 8 | 106 | 15 | $30.00 | |||||
| 9 | 120 | 14 | $28.00 | |||||
| 10 | 133 | 13 | $26.00 | |||||
| 11 | 145 | 12 | $24.00 | |||||
| 12 | 156 | 11 | $21.00 | |||||
| 13 | 165 | 9 | $18.00 | |||||
| 14 | 172 | 7 | $14.00 | |||||
| 15 | 177 | 5 | $10.00 | |||||
| 16 | 179 | 2 | $4.00 | |||||
| 17 | 179 | 0 | $0.00 | |||||
| Using the information from above, fill in the following 'derived demand' schedule: | ||||||||
| Hourly wage | Number of workers to maximize profits | |||||||
| $13.00 | 15 | |||||||
| $17.00 | 13 | |||||||
| $21.00 | 12 | |||||||
| $23.00 | 11 | |||||||
| $25.00 | 10 | |||||||
The table below represents the hourly output and cost structure for a local pizza shop. The market is perfectly competitive, and the market price of a pizza in this area is $10. Total cost includes all implicit opportunity costs. Calculate the pizza shop's marginal cost and marginal revenue at each rate of output and fill in the values in the table.
|
Total Hourly Output and Sales of Pizzas |
Total Hourly Cost ($) |
Total Revenue ($) |
Total Economic Profit ($) |
Marginal Cost ($) |
Marginal Revenue ($) |
|
0 |
6 |
0 |
0 |
- |
- |
|
1 |
10 |
10 |
0 |
||
|
2 |
12 |
20 |
8 |
||
|
3 |
13 |
30 |
17 |
||
|
4 |
15 |
40 |
25 |
||
|
5 |
19 |
50 |
31 |
||
|
6 |
25 |
60 |
35 |
||
|
7 |
33 |
70 |
37 |
||
|
8 |
43 |
80 |
37 |
||
|
9 |
55 |
90 |
35 |
||
|
10 |
71 |
100 |
29 |
How I calculate this?
