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Home Q & A Board Other Fields Homework Help Business Economics
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Ryanteck Ryanteck
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6 years ago
You have been hired by a data processing firm to provide economic advice. The owner of the firm tells you that the firmʹs only variable input is the number of data-entry operators. The hourly wage for data-entry operators is $10.00. The marginal revenue product curve for data-entry operators reaches its maximum at three workers with a marginal revenue product of $12.00. What advice would you give this firm?
A) Hire data-entry operators until the marginal revenue product is equal to the wage -- which will occur when more than three operators are employed.
B) Decrease the wage rate paid to data-entry operators so that their marginal revenue product will decrease.
C) Shut down immediately, as the firm is not able to cover all of its variable costs.
D) Hire three data-entry operators so as to maximize profits.
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DeToXiFYDeToXiFY
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Ryanteck Author
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6 years ago
This site is awesome
Tim0301
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Yesterday
Thank you, thank you, thank you!
larrybrads
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2 hours ago
Good timing, thanks!
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