[Solved] Heavenly Bubbles Is a Small Soap Company Whose Main Product

Question 122
arrowQuestion 122arrow

Heavenly Bubbles is a small soap company whose main product is hand soap,which sells in a competitive market for $3 a bar.The output per hour of each workstation varies with the amount of labour used as the data in the table below indicates.Labour costs $12 and hour
img a)Fill in the marginal product,total revenue I and marginal revenue I columns in the table above.
b)How many workers would the firm assign to each workstation?
c)Now assume that the wage rate increases to $16 an hour.How many workers should the firm now assign to each workstation?
d)Suppose the price of each bar increases to $4 each.Fill in the total revenue II column and marginal revenue product II in the table above to reflect this change.
e)Now how many workers would the firm assign to each workstation at a wage rate of $16?


10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.


Explore our library and get Economics Homework Help with various study sets and a huge amount of quizzes and questions

Related Questions

Get Free Access Now!

Get free access by uploading any valuable academic documents


Invite your friends by sharing your unique referral link, and get a free access

Invite a friendInvite a friendInvite a friend
Join Us
Join Us

Sign up to get 5 free question for every quiz you visit. Or Subscribe and get instant access