Question: Recently, some college alumni started a moving service for students living on campus. They have three employees and are debating hiring a fourth. The hourly

Recently, some college alumni started a moving service for students living on campus. They have three employees and are debating hiring a fourth. The hourly wage for an employee is $18 per hour. An average moving job takes three hours. The company currently does three moving jobs per week, but with one more employee, the company could manage five jobs per week. The company charges $80 for a moving job.
a. What would be the new employee’s marginal product of labor?
b. What is the value of that marginal product?
c. Should the moving service hire a fourth worker?

Step by Step Solution

★★★★★

3.45 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a 2 moving jobs b 80 x 2 160 c Yes The wor... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

683-B-E-M-E (3889).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Montclair Tours provides guided educational tours to college alumni associations. The company is divided into two operating divisions: domestic tours and world tours. Each of the tour divisions uses...

For a major university, match each cost in the following table with the activity base most appropriate to it. An activity base may be used more than once, or not used at all. Cost: Activity Base: 1....

Thames Assurance Company sells a variety of life and health insurance products. Recently, Thames developed a long-term care policy for sale to members of university and college alumni associations....

Recently, some college alumni started a moving service for students living on campus. They have 3 employees and are debating hiring one more. The hourly wage for an employee is $ 3 0 per hour. An...

Recently, some college alumni started a moving service for students living on campus. They have 3 employees and are debating hiring 1 more. The hourly wage for an employee is $18 per hour. An average

Training and Development 7 Blend Images/Blend Images/Superstock Learning Outcomes Define the terms training and development. After reading this chapter, you should be able to do the following:...

Question v. Bob Walker, the divorced, 57 year old, owner of Salsa Dog, sat alone in his home office with the most recent company financial statements spread out on his desk. Although he spent the...

\f 134 THE BIG SQUEEZE munications Workers of America that has sought to unionize high"tech workers. "They hire whomever Microsoft tells them to put on their payroll. Then they p~ocess their...

Hi, I'm having an issue with this Simnet project and I was wondering if anyone could help me. There is only one issue: Step 3a, in the instruction pdf that I have attached. When my project is graded...

How does the tool of constrained optimization help decision makers make choices? What roles do the objective function and constraints play in a model of constrained optimization?

For Problem and Exercise 4-50, draw the ER diagram based on the normalized relations. StoreName, PetName, Pet Description, Price, Cost, SupplierName, ShippingTime, QuantityOnHand, DateOfLastDelivery,...

Boston Recyclers Company uses the indrect method to propare its statement of cash flows. Refor to the following information for 2 0 1 9 : Retained Earrings, beginning balance, $ 1 3 8 , 0 0 0...

Distinguish between goods and stores.

1. The average cost of producing an iPhone is about $ _____. 2. The cost of producing the first fake killer whale is about three times the cost of producing the second because the firm uses _____...

In the search for alternatives to fossil fuels, a prominent contender is switchgrass, a perennial grass that is native to the U.S. plains states. The principal advantage of switchgrass and other...

1. The firm-specific demand curve shows the relationship between the ____ charged by the firm and the ____ by the firm. 2. The firm-specific demand curve is ____ (horizontal/negatively) sloped for a...

Problem 10-15 Project Evaluation (LO1) Dog Up! Franks is looking at a new sausage system with an initial cost of $500,000 that will last for five years. The fixed asset will qualify for 100 percent...

Question 23 Use the information below to answer the following questions Show all work.co 8pt;Total = 18 points) Goods Market Money Market RO Po C= 10040811-7) 1-900-3,000 G-500;T=300 TB = 400/1-4/E)...

QUESTION 24 (4 points) Complete the following interest rate table: QUESTION 25 (4 points) Complete the following Canadian mortgage loan table