Business, 03.07.2020 22:01 kokilavani

Suppose you work as a manager in a firm. Your job is to hire the right number of people to maximize profit. Every worker you hire costs $150 per day, and each unit of output sells for $18 per unit. Given your current labor force, you know that if you hire another worker, that person will increase your output by 32. 1. What is the marginal product of the worker you are considering hiring?
2 What is the value of the marginal product of labor for this potential employee?
3. What is the marginal profnt or loss for hiring this employee? (Use a negative number if hiring this person results in a net loss
4. Should this additional worker be hired?

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Answer from: mylanag12

1. 32

2. $576

3. $426

4. Yes

Explanation:

1. What is the marginal product of the worker you are considering hiring?

From the question, we are informed that given current labor force, hiring another worker will increase the output by 32. This means that the marginal product of the worker you are considering hiring is 32.

2 What is the value of the marginal product of labor for this potential employee?

The value of the marginal product of labor for this potential employee will be the product of the price of each unit of output sale and the marginal product of the employee. This will be:

= $18 × 32

= $576

3. What is the marginal profit or loss for hiring this employee?

The marginal profit or loss will be the difference between the value of the marginal product of labor for this potential employee and the hiring cost per day for every worker. This will be:

= $576 - $150

= $426

There is a marginal profit of $426.

4. Should this additional worker be hired?

Yes, the additional worker should be hired because there is a positive marginal profit.

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Answer from: Quest

I’ll try to check this out.

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