The following table shows the number of cakes that could be baked daily at a local bakery, depending on the number of bakers a Calculate the MP L b Do you observe the law of diminishing marginal returns Explain c Suppose each cake sells for $10 Calculate the MRP L d Draw the MRPL curve, which is th...

From the information provided we can address the questions as follows a Calculate the MP L Marginal Product of Labor The marginal product of labor MP ...

The following table shows the number of cakes that could be baked daily at a local bakery,

Question:

The following table shows the number of cakes that could be baked daily at a local bakery, depending on the number of bakers. image text in transcribed

a. Calculate the MP_L.

b. Do you observe the law of diminishing marginal returns? Explain.

c. Suppose each cake sells for $10. Calculate the MRP_L.

d. Draw the MRPL curve, which is the demand curve for bakers.

e. If each baker is paid $80 per day, how many bakers will the bakery owner hire, given that the goal is to maximize profits? How many cakes will be baked and sold each day?

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