Mrs. Mei Mei, the owner, and manager of the Moora Photocopy Sdn Bhd located near your university
Question:
Mrs. Mei Mei, the owner, and manager of the Moora Photocopy Sdn Bhd located near your university is contemplating keeping her shop open after 6 p.m. and until midnight. In order to do so, she would have to hire additional workers, L. She estimates that the additional workers would generate the following total output, Q (where each unit of output refers to 100 pages duplicated).
Working hired | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
Total Product | 0 | 12 | 22 | 30 | 36 | 40 | 42 |
a. Calculate the average product (APL) and marginal product (MPL) of the additional worker.
b. Using the VMP rules, how many workers should Mrs. Mei Mei hires if the price of each unit of output is $10 and each worker hired must be paid $40 per day
c. Using the MR=MC approach, prove that the number of workers that Mrs. Mei Mei should hire is the same as that obtained in (b).
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood