Asked by Miranda Delph on May 16, 2024
Verified
A competitive, profit-maximizing pays its workers a wage of $200 per day and it sells its output for $10 per unit. Determine the marginal product, on a daily basis, of the last worker hired.
Marginal Product
The additional output resulting from one more unit of a particular input, showing the contribution of that input to total production.
- Assess the equilibrium in hiring practices from the standpoint of optimizing financial gain.
Verified Answer
UW
Urvashi WaliaMay 19, 2024
Final Answer :
Using the profit-maximizing condition P X MPL = W, we have $10 X MPL = $200, so MPL = 20.
Learning Objectives
- Assess the equilibrium in hiring practices from the standpoint of optimizing financial gain.