Question

Recall the production function, to maximize profit, a producer should make sure that the real wage...

Recall the production function, to maximize profit, a producer should make sure that the real wage of a worker should be equal to his or her marginal product of labor (MPL).

Number of labor

Total output /h

Number of labor

Total output

1

10 pizzas

4

29 pizzas

2

18 pizzas

5

32 pizzas

3

24 pizzas

6

30 pizzas

Suppose the MPL of workers in a pizza shop as above. The table shows the total output of pizzas made per hour by the number of labor used as input. If the net price (excluding material costs) of a pizza is $3.00. And the nominal wage of a worker is $18.00 per hour. Then how many workers should be employed per hour. Please show the details step by step.

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
Recall the production function, to maximize profit, a producer should make sure that the real wage...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Bongiorno’s is a pizzeria operating in a competitive market. Its short-run production function is shown below....

    Bongiorno’s is a pizzeria operating in a competitive market. Its short-run production function is shown below. Bongiorno’s weekly cost of capital (plant) is $750, its cost of labor is $320 per worker, and its cost of the pizza ingredients is $6 per pie. The going market price of pizza is $13 per pie. A) In the scenario above, when Bongiorno’s hires a fourth worker, what is the marginal product of labor? B) In the scenario above, if Bongiorno’s hires a...

  • 4 pts Question 7 Production data for Joe's Pizza Parlor are listed in the table below....

    4 pts Question 7 Production data for Joe's Pizza Parlor are listed in the table below. Joe sells his pizzas for $5 each, and the wage rate for pizza cooks is $15/hour. Number of Workers Pizzas Baked per Hour 20 What is the value of the Marginal Product (VMP) of the second worker? $15 520

  • Gino's Pizza shop hires workers in a competitive market to make pizza. The ingredients required to...

    Gino's Pizza shop hires workers in a competitive market to make pizza. The ingredients required to make each pizza cost $5. Daily output at Gino's Pizza varies with the number of workers hired, as shown in the table below: If pizzas sell for $8 each, what is the value marginal product for the 4th worker? Select one: a. $96 per day b. $112 per day c. $48 per day d. $128 per day Number of Pizzas/day workers 0 0 16...

  • The following table shows the daily production schedule at Hilary's Pizza Joint Complete the table by...

    The following table shows the daily production schedule at Hilary's Pizza Joint Complete the table by computing the marginal product for each worker, Labor (Number of workers) Total Output (Pizzas per day) Marginal Product о w мн a un o o o o

  • Benvenuto is a pizzeria operating in a competitive market. Its short-run production function is shown below....

    Benvenuto is a pizzeria operating in a competitive market. Its short-run production function is shown below. Benvenuto's weekly cost of labor is $450 per worker, and its cost of the ingredients used to make pizza is $6 per pie. The going market price of pizza is $9 per pie. Labor Total product (weekly workers) (pizzas per week) 52 OWN 172 341 536 738 924 1,075 1,168 1,184 In the scenario above, when Benvenuto hires a third worker, what is the...

  • please help! Principles of Microeconomics-Assignment No. 3 Use the following table to determine the optimal input...

    please help! Principles of Microeconomics-Assignment No. 3 Use the following table to determine the optimal input usage of labor. Labor can be hired for S14 per hour (there are no other costs involved in employing labor). Labor Qty/hr. 10 Price $18.00 8.69 6.25 5.40 5.06 4.85 4.75 4.70 If the firm sells its output in a competitive output market for $5 per unit (ignore the Price column for this question), then how many workers should be employed in order to...

  • 1a) Consider an economy where output is produced using just labor as input. Output is sold...

    1a) Consider an economy where output is produced using just labor as input. Output is sold at $10 per unit and the marginal product of labor for each worker hired is expressed as MPL=10-2L. If each worker is paid $40, what would be the total profit of the profit-maximizing entrepreneur? a. $40 b. $60 c. $0 1b) Consider an economy where output is produced using just labor as input. Output is sold at $10 per unit and the marginal product...

  • Numbers and Graphs: Production and Costs (Ch 21) L a pre TESLUIT WE USE TAMO WORCES...

    Numbers and Graphs: Production and Costs (Ch 21) L a pre TESLUIT WE USE TAMO WORCES DE pizza restaurant has a fixed cost of $150 per day and pays each worker $270 per day. Fill in the blanks to complete the Marginal Physical Product of Labor column for each worker and the Marginal Cost column at each level of labor. (Hint: Marginal cost is the change in total cost divided by the change in the quantity of output. You can...

  • Benvenuto is a pizzeria operating in a competitive market. Its short-run production function is shown below....

    Benvenuto is a pizzeria operating in a competitive market. Its short-run production function is shown below. Benvenuto's weekly cost of labor is $450 per worker, and its cost of the ingredients used to make pizza is $6 per pie. The going market price of pizza is $9 per pie. Total product (weekly workers)(pizzas per week) Labor 52 1 172 2 33 341 4 536 5 738 6 924 7 1,075 8 1,168 9 1,184 Question 9 Homework Unanswered . In...

  • of 3 The nation of Ectenia has 20 production function and the marginal product of labor...

    of 3 The nation of Ectenia has 20 production function and the marginal product of labor in each orchard s describe the 100L-12 MPL100-2L Now, suppose the price of apples is back at $2 per apple, but a hurnicane destroys half the orchards so only 10 orchards remain. Recall that each orchard's labor demand as a function of the daily wage is L. -s0-0.25w. What is the market's labor demand? 0 L=500-5w L=50-025 w 0に100-5W OL-500- 2.5W Ectenia continues to...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT