a market price of $2 per dozen and can hire all the workers it needs at...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
a market price of $2 per dozen and can hire all the workers it needs at a wage rate of $8 per hour. The output of the Leadmill Company is a perfectly competitive pencil-manufacturing firm. Leadmill can sell all of the pencils it produces at workers at Leadmill is given in the table below. Number of Workers 0123 8677AWN-0 3 4 5 6 7 Output (dozens) 0 8 SZER338 15 21 26 30 35 36 a. Using marginal analysis, state the condition for employing the profit-maximizing number of workers. b. How many workers should Leadmill hire to maximize profit? Explain how you derived that number. c. If the wage rate decreased to $6 dollars per hour, how many workers would Leadmill employ? d. If the wage rate was $6 per hour and the price of pencils decreased to $1 per dozen, how many workers would Leadmill employ? a market price of $2 per dozen and can hire all the workers it needs at a wage rate of $8 per hour. The output of the Leadmill Company is a perfectly competitive pencil-manufacturing firm. Leadmill can sell all of the pencils it produces at workers at Leadmill is given in the table below. Number of Workers 0123 8677AWN-0 3 4 5 6 7 Output (dozens) 0 8 SZER338 15 21 26 30 35 36 a. Using marginal analysis, state the condition for employing the profit-maximizing number of workers. b. How many workers should Leadmill hire to maximize profit? Explain how you derived that number. c. If the wage rate decreased to $6 dollars per hour, how many workers would Leadmill employ? d. If the wage rate was $6 per hour and the price of pencils decreased to $1 per dozen, how many workers would Leadmill employ?
Expert Answer:
Answer rating: 100% (QA)
a To determine the profitmaximizing number of workers Leadmill should compare the marginal revenue product MRP of labor with the wage rate w The MRP i... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Winnie the pooh has decided to start up a honey lemonade production factory. She has hired a fluid mechanic expert Mr Teoh in designing a fluid flow system for production factory, particularly from...
-
Winnie the pooh has decided to start up a honey lemonade production factory. She has hired a fluid mechanic expert Mr Teoh in designing a fluid flow system for production factory, particularly from...
-
Alabama Corp.'s taxable income differed from its accounting income for 2023. Accounting income includes an expense of $25,000 under meals and entertainment expense, with $3,000 of that total being...
-
A nonconducting spherical shell, with an inner radius of 4.0 cm and an outer radius of 6.0 cm, has charge spread nonuniformly through its volume between its inner and outer surfaces. The volume...
-
What is the lead time (in weeks) to respond to a customer order for product A, based on the BOM shown in Figure 11.34, assuming no existing inventories or scheduled receipts? FIGURE 11.34 A BOM for...
-
If a credit memorandum were issued for returned goods, how might an auditor determine whether the goods were actually returned?
-
In March 1998, forty-three-year-old Peter Barnes read an ad in the Chicago Tribune that Pentrix was seeking experienced word processors to work in its Chicago office. Pentrix is a national...
-
Mexico has two main government programs that transfer income to rural households. PROCAMPO , which pays a set amount per acre to farmers who grew basic grains in a base year prior to the elimination...
-
Determine the moment of each force about the bolt located at A. Given: FB = 40 lb a = 2.5 ft α = 20 deg γ = 30 deg FC = 50 lb b = 0.75 ft β = 25 deg Fc FB
-
Cite evidence that biological aging, individual heredity, and environmental factors contribute to osteoporosis.
-
When you exhale, all of the air in your lungs must exit through the trachea. If you exhale through your nose, this air subsequently leaves through your nostrils. The area of your nostrils is less...
-
Given what you have calculated for the period of the full oscillation in this model, what is the landing-to-liftoff time for the stretch and rebound of the sprinter's foot? A. \(0.050 \mathrm{~s}\)...
-
To keep from overheating, the cyclist must get rid of the excess thermal energy generated in his body. If he cycles at this rate for 2 hours, how many liters of water must he perspire, to the nearest...
-
A balloon is launched at sea level, where the air pressure is \(100 \mathrm{kPa}\). The density in the hot-air chamber is \(1.0 \mathrm{~kg} / \mathrm{m}^{3}\). What is the density of the air when...
-
Some bat species have auditory systems that work best over a narrow range of frequencies. To account for this, the bats adjust the sound frequencies they emit so that the returning, Doppler shifted...
-
WeHaul Trucking is planning its truck purchases for the coming year. It allocated $600,000 for the purchase of additional trucks, of which three sizes are available. A large truck costs $150,000 and...
-
The sales department of P. Gillen Manufacturing Company has forecast sales in March to be 20,000 units. Additional information follows: Finished goods inventory, March 1 . . . . . . . . . . . . . . ....
-
(a) What would his annual income be after 20 years as a teacher if he received an average 3percent raise every year? (b) Victor could earn $4000 each year teaching during the summers. What is the...
-
1. Allison Jones of Jonesboro, Arkansas, is considering paying $150 a year for an extended warranty on several of her major appliances. If the appliances are expected to last for five years and she...
-
(a) What is the Johnsons reportable gross income on their joint tax return? (b) What is their adjusted gross income? (c) What is the total value of their exemptions? (d) How much is the standard...
-
The equations of motion of a two-degree-of-freedom system are given by where \(F_{1}(t)\) denotes a rectangular pulse of magnitude 5 acting over \(0 \leq t \leq 2\). Find the solution of the...
-
Find the response of a simple pendulum numerically by solving the linearized equation: \[\ddot{\theta}+\frac{g}{l} \theta=0\] with \(\frac{g}{l}=0.01\) and plot the response, \(\theta(t)\), for \(0...
-
Using the Newmark method with \(\alpha=\frac{1}{6}\) and \(\beta=\frac{1}{2}\), solve Problem 11.20. Data From Problem 11.20:- The equations of motion of a two-degree-of-freedom system are given by...
Study smarter with the SolutionInn App