(Table: Total Product of Labor at Debbie's Bakery) Use Table: Total Product of Labor at Debbie's Bakery.Debbie can sell cakes at $10 each.If Debbie must pay each worker $40 per day,how many workers will she hire to maximize profit?

A) 3
B) 4
C) 5
D) 6

Question

Georg beshay · Accepted Answer

Final Answer : C, Explanation :  To maximize profit, Debbie should hire workers until the marginal cost of labor equals the marginal revenue product. If each worker costs $40 and each cake sells for $10, she should hire workers until the additional revenue from the cakes produced by the last worker hired equals $40. This typically occurs at the point where the marginal product of labor starts to decrease, which is often at 5 workers.

(Table: Total Product of Labor at Debbie's Bakery) Use Table: Total Product of Labor at Debbie's Bakery.Debbie can sell cakes at $10 each.If Debbie must pay each worker $40 per day,how many workers will she hire to maximize profit?

A) 3
B) 4
C) 5
D) 6

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(Table: Total Product of Labor at Debbie's Bakery) Use Table: Total Product of Labor at Debbie's Bakery.Debbie can sell cakes at $10 each.If Debbie must pay each worker $40 per day,how many workers will she hire to maximize profit?A) 3B) 4C) 5D) 6

Definitions

Learning Objectives

Learning Objectives

Related questions

(Table: Total Product of Labor at Debbie's Bakery) Use Table: Total Product of Labor at Debbie's Bakery.Debbie can sell cakes at $10 each.If Debbie must pay each worker $40 per day,how many workers will she hire to maximize profit?

A) 3
B) 4
C) 5
D) 6