Ask Question
BusinessBusiness
30 November, 10:30

A profit-maximizing firm's daily total revenue is $155 with 3 workers, $200 with 4 workers, and $230 with 5 workers. the cost of each worker is $40 per day. the firm should

+3
Answers (1)
  1. 30 November, 10:52
    0
    Worker would be a variable output,

    155 with 3 worker, 120 for their wage (variable cost), marginal rev would be 51.7. Can't calculate ATC because no Q is given.

    200 with 4 workers - >45 marginal rev, 160 for their wage mr=50

    230 with 5 workers - >30 marginal revenue, 200 for their wage mr=46

    Because of the law of diminishing returns, the marginal revenue decreases as the firm hires more workers as the resources are fixed (assuming this is in short run). The firm should refrain from hiring more workers and focus more on buying machinery (capital resources) in order to make the most out of the workers, then hire more staffs when there are enough resources for them to work on.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A profit-maximizing firm's daily total revenue is $155 with 3 workers, $200 with 4 workers, and $230 with 5 workers. the cost of each ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
John inc., a manufacturing firm, failed to purchase airtime before the season premiere of a popular national television show. however, the company was able to purchase 15-second spots at a higher than average price. in this scenario, john inc.
Answers (1)
You are purchasing an equipment for $ 200,000 for your new store. Assume the store has no other expenses or revenues other than those associated with this project.
Answers (1)
You've written a check to Goodwill Supply, and the check has been lost. What should you do? A. Stop payment on the first check; then write a second one. B. Send a counter check to Goodwill. C. Write another check immediately. D.
Answers (1)
Flint Corporation issued 700 shares of no-par common stock for $7,800. Prepare Flint's journal entry if (a) the stock has no stated value, and (b) the stock has a stated value of $2 per share
Answers (2)
Which is not a vital component required in driverless cars?
Answers (1)
New Questions in Business
Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). However, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due).
Answers (1)
Areas set up to attract foreign investments by allowing the iportation of raw and intermediate materials without paying tariffs are called
Answers (1)
The Wheeler-Lea Act empowered the FTC to regulate the advertising of food and drugs. It declared all misleading, unfair, or deceptive practices to be illegal, regardless of injury to competition. a. True b. False
Answers (1)
Along with higher return comes
Answers (1)
Kalyan Corporation uses the FIFO method in its process costing system. Operating data for the Enameling Department for the month of May appear below: Units Percent Complete with Respect to Conversion Beginning work in process inventory 1,800 20 %
Answers (1)
Home » Business » A profit-maximizing firm's daily total revenue is $155 with 3 workers, $200 with 4 workers, and $230 with 5 workers. the cost of each worker is $40 per day. the firm should
Sign Up Forgot Password?