Joe Fixit has an appliance- repair business. He has more business than he can handle and wants to hire another person. Joe estimates that three appliances can be repaired each hour by a qualified person. Joe bills out labor at $45 per hour, but he stipulates that the minimum charge for appliance - repair estimates is $30 plus parts. What is the marginal revenue product of a qualified repair person? What is the maximum hourly wage that he would pay an employee?

Also, Does the $30 plus parts have anything to do with hourly rate?

Answer rating: 100% (QA)

Answer The marignal revenue that another worker would bring to Joe under these ... View the full answer