1. Recently, some college alumni started a moving service for students living on
ID: 1223785 • Letter: 1
Question
1. 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 $30 per hour. An average moving job takes 4 hours. The company currently does 3 moving jobs per week, but with 1 more employee, the company could manage 5 jobs per week. The company charges $100 for a moving job.
Instructions: Round your answers to the nearest whole number.
a. The new employee’s marginal product of labor is __ moving jobs.
b. The value of that marginal product is $__
2. Fresh Veggie is one of many small farms in Florida operating in a perfectly competitive market. Farm labor is also perfectly competitive, and Fresh Veggie can hire as many workers as it wants for $20 a day. The daily productivity of a tomato picker is given in the table below.
Instructions: Round your answer to the nearest whole number.
If a bushel of tomatoes sells for $5, Fresh Veggie will hire ___ workers.
tomatoes 0 0 1 12 2 22 3 30 4 35 5 38 6 40
Explanation / Answer
1. a. 5 moving jobs
b. $150
2. 4 workers, and at this level the total revenue= 35*5= $175, and total cost is 20*4= 100
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.