Use the table below to answer the following question. D. $60 per worker Use the

Question

Use the table below to answer the following question.

D.  $60 per worker

Use the table below to answer the following question.

2.1.   Suppose you are a company owner. You'd be willing to hire at most five workers if the going wage were equal to: A.  $100 per worker B.  $90 per worker C.  $195 per worker

D.  $60 per worker

Use the table below to answer the following question.

2.2.   Suppose you hire five workers. The wage cost for the last worker is $85. Would you make more profit paying the others the same wage or offering them higher wages because they are worth more to you? A.  The same wage B.  Higher wages

Explanation / Answer

2.1)

From marginal wage of labor, output can be calculated as adding additional wage caused by adding one more extra labor.

For hiring utmost 5 workers. If the going wage will be equal to the profit earned by hiring 5 workers.

(0 + 55 + 107 + 149 +189 ) /5 = 500/5 = $100 per worker

2.2) If five workers are hired. Total cost = $500

If the cost for the last worker = 85 then paying same amount the tototal cost will be eqaul to

85* 5 = $425

So paying others the same wage will yield more profit.

No of workers Output Marginal wage for labor Total wage Profit 1 195 195 195 0 2 335 140 280 55 3 449 114 342 107 4 549 100 400 149 5 639 90 450 189 6 723 84 504 219 7 803 80 560 243 8 879 76 608 271 9 952 73 657 295 10 1022 70 700 322 11 1090 68 748 342 12 1156 66 792 364 13 1220 64 832 388 14 1282 62 868 414 15 1342 60 900 442

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.