Asked by Daisy Farhm on Jul 22, 2024
Verified
A competitive, profit-maximizing pays its workers a wage of $294 per day. The marginal product of the last worker is 35 units of output. What is the firm's marginal cost of producing its last unit of output?
Units of Output
Units of output refer to the quantity of goods or services produced by a company, industry, or economy within a specified period.
- Comprehend the mathematical link between the quantity of laborers engaged, their incremental productivity, and the peak production rates.
Verified Answer
MW
Muhammad WaseemJul 28, 2024
Final Answer :
Using the profit-maximizing conditions P X MPL = W and P = MC, and P = MC, we have MC = W/MPL, so MC = $294 / 35 = $8.40.
Learning Objectives
- Comprehend the mathematical link between the quantity of laborers engaged, their incremental productivity, and the peak production rates.