Table 18-6
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day.

$$\begin{array} { | c | c | c | c | c | c | }
\hline \begin{array} { c }
\text { Labor } \
\text { (Number of } \
\text { workers) }
\end{array} & \begin{array} { c }
\text { Output } \
\text { (Cupcakes per } \
\text { day) }
\end{array} & \begin{array} { c }
\text { Marginal } \
\text { Product } \
\text { of Labor } \
\text { (Cupcakes per } \
\text { day) }
\end{array} & \begin{array} { c }
\text { Value of the } \
\text { Marginal } \
\text { Product of Labor } \
\text { (Cupcakes) }
\end{array} & \begin{array} { c }
\text { Wage } \
\text { (Dollarsper } \
\text { worker per } \
\text { day) }
\end{array} & \begin{array} { c }
\text { Margin } \
\text { Profit } \
\text { (Dollar }
\end{array} \
\hline 0 & 0 & & & 325 & \
\hline 1 & 200 & & & 325 & \
\hline 2 & 350 & & & 325 & \
\hline 3 & 475 & & & 325 & \
\hline 4 & 575 & & &325 & \
\hline
\end{array}$$
-Refer to Table 18-6. Assuming MadeFromScratch is a competitive, profit-maximizing firm, how many workers will the firm hire?
A)Two workers
B)Three workers
C)Four workers
D)Five workers

Question

Table 18-6
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day.
​
​
 $$\begin{array} { | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Labor } \
\text { (Number of } \
\text { workers) }
\end{array} & \begin{array} { c } 
\text { Output } \
\text { (Cupcakes per } \
\text { day) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Product } \
\text { of Labor } \
\text { (Cupcakes per } \
\text { day) }
\end{array} & \begin{array} { c } 
\text { Value of the } \
\text { Marginal } \
\text { Product of Labor } \
\text { (Cupcakes) }
\end{array} & \begin{array} { c } 
\text { Wage } \
\text { (Dollarsper } \
\text { worker per } \
\text { day) }
\end{array} & \begin{array} { c } 
\text { Margin } \
\text { Profit } \
\text { (Dollar }
\end{array} \
\hline 0 & 0 & & & 325 & \
\hline 1 & 200 & & & 325 & \
\hline 2 & 350 & & & 325 & \
\hline 3 & 475 & & & 325 & \
\hline 4 & 575 & & &325 & \
\hline
\end{array}$$ ​
-Refer to Table 18-6. Assuming MadeFromScratch is a competitive, profit-maximizing firm, how many workers will the firm hire?
A)Two workers
B)Three workers
C)Four workers
D)Five workers

Quizplus · Accepted Answer

The Answer of Table 18-6
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day.
​
​
 $$\begin{array} { | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Labor } \
\text { (Number of } \
\text { workers) }
\end{array} & \begin{array} { c } 
\text { Output } \
\text { (Cupcakes per } \
\text { day) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Product } \
\text { of Labor } \
\text { (Cupcakes per } \
\text { day) }
\end{array} & \begin{array} { c } 
\text { Value of the } \
\text { Marginal } \
\text { Product of Labor } \
\text { (Cupcakes) }
\end{array} & \begin{array} { c } 
\text { Wage } \
\text { (Dollarsper } \
\text { worker per } \
\text { day) }
\end{array} & \begin{array} { c } 
\text { Margin } \
\text { Profit } \
\text { (Dollar }
\end{array} \
\hline 0 & 0 & & & 325 & \
\hline 1 & 200 & & & 325 & \
\hline 2 & 350 & & & 325 & \
\hline 3 & 475 & & & 325 & \
\hline 4 & 575 & & &325 & \
\hline
\end{array}$$ ​
-Refer to Table 18-6. Assuming MadeFromScratch is a competitive, profit-maximizing firm, how many workers will the firm hire?
A)Two workers
B)Three workers
C)Four workers
D)Five workers

Table 18-6 Consider the Following Daily Production Data for MadeFromScratch

Table 18-6
Consider the Following Daily Production Data for MadeFromScratch