Would it be better to operate with 15 workers

Assignment Help Econometrics

Reference no: EM131130115

Advice for an Unprofitable Firm. You ve been hired as an economic consultant by a price-taking firm that produces baseball caps. The firm already has a factory, so it is operating in the short run. The price of caps is $5, the hourly wage is $12, and each cap requires $1 worth of material. The firm has experimented with different workforces and the results are shown in the first two columns of the following table.

a. Fill in the blanks in the table.

b. Is it sensible to continue to operate at a loss with 14 workers?

c. Would it be better to operate with 15 workers? Explain, using the marginal principle.

Reference no: EM131130115

Questions Cloud

Data from its activity-based costing system : The company makes 230 units of product F60N a year, requiring a total of 480 machine-hours, 50 orders, and 30 inspection-hours per year. The product"s direct materials cost is $12.70 per unit and its direct labor cost is $45.93 per unit. The produ..

List of accounts below and the unadjusted balances : 1. The list of accounts below and the unadjusted balances of these accounts were taken from the ledger of the Manville Corporation at the end of their accounting period, March 31, 20X2:

How much variability does bmi account for in pcs : What was the unstandardized slope for BMI when predicting PCS in Model 3 and from the Results section, third paragraph, for whom was age more scattered (or more variable)?

Summarize bronfenbrenner ecological model : Explain which childcare (nanny, center-based, or family-based care) option (before/during/after preschool) you think is best for the child and why. Be sure to include discussion of the social factors that influence the likelihood of the family sel..

Would it be better to operate with 15 workers : Is it sensible to continue to operate at a loss with 14 workers?

Write descriptive research question for a dependent variable : Write a descriptive research question for a dependent variable. Using the scripts from the textbook (p. 133), write an inferential research question to compare groups or related variables:

Does rat infestation affect the health of the community : My quantitative PICO question is: Does rat infestation affect the health of the community as compared to communities without rats?

Explain the effects on the farmers production cost : Consider a switchgrass farmer whose initial break-even price is $76 = $36 explicit cost + $40 opportunity cost for land. For each of the following changes, explain the effects on the farmers production cost and break-even price. (Related to Applic..

No legal obligation to make the payment : Carey is a waiter at a restaurant that pays a small hourly amount plus tips. Customers are not required to tip the waiter. Carey is especially attentive and friendly, and her tips average 25% of the restaurant charges. Is Carey required to include..

User Account

All Pages