Ask Question
BusinessBusiness
3 April, 01:32

suppose the fimrs hires each unit of labor for $700 per week, and each unit of output sells for $9. How many workers will the firm hire to maximize its profit?

+1
Answers (1)
  1. 3 April, 04:48
    0
    The question is missing the amount of output units that each additional unit of labor generates, but we can calculate how many units each additional unit of labor should produce in order to maximize profit.

    In order for a firm to maximize its profit, the marginal revenue product (MRP) = marginal cost (MC).

    MRP = output units per additional unit of labor x price per unit = U x $9

    MC = $700

    U x $9 = $700

    U = $700 / $9 = 77.78, so we round up to 78 units

    In order to maximize profit, each additional unit of labor must generate 78 additional units of output.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “suppose the fimrs hires each unit of labor for $700 per week, and each unit of output sells for $9. How many workers will the firm hire to ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
On December 31, Treats Catering Inc.'s trial balance shows a $1,000 balance in the Supplies account. However, a physical count of the supplies determined that only $350 of supplies actually remain in the supply cabinet.
Answers (1)
Make a case that development economics might be merely a combination of all the other subfields of economics, only applied to low-income countries.
Answers (1)
The balanced-budget multiplier is a measure of the short-run change in aggregate output caused by equal changes in government purchases and taxes.
Answers (1)
In a discount store lee found a sun kit containing a beach towel, a sun visor, and suntan lotion. the items, which were sold together, retailed at $18.50, but were marked down to $12.99. the retailer had sold only one at the $18.
Answers (1)
Which of the following below will most efficiently provide products? A) a market economy with one producer B) a market economy with many producers C) a command economy with one producer D) a command economy with many producers
Answers (1)
New Questions in Business
true or false Activity cost pools are factory overhead costs initially budgeted for activities, such as machine usage, inspections, moving, production setups, and engineering activities.
Answers (1)
Prepare the Statement of Cash Flows for Smart Touch Learning for the month ended December 31, 2016 from the provided information. Within each section of the statement, use the drop-down menus to enter the accounts.
Answers (1)
A company is considering purchasing a machine for $21,000. The machine will generate an after-tax net income of $2,000 per year. Annual depreciation expense would be $1,500. What is the payback period for the new machine? a. 4 years. b. 6 years. c.
Answers (1)
A company purchased a delivery van for $15,500 with a salvage value of $2,300 on September 1, Year 1. It has an estimated useful life of 4 years.
Answers (1)
Money has a time value because
Answers (1)
Home » Business » suppose the fimrs hires each unit of labor for $700 per week, and each unit of output sells for $9. How many workers will the firm hire to maximize its profit?
Sign Up Forgot Password?