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    economics, marginal, labor, profit

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    1.) Gordon's Pizzeria, a firm that is small relative to both the labor market and the pizza market, can hire workers at an hourly wage of $12. The 50th hour of labor added 4 pizzas to the firm's output, and each pizza can be sold for $10.

    a) How much does the 50th labor-hour add to the firm's profit? ________________________________

    b) Should the firm have hired this 50th unit of labor? Explain why or why not.____________________

    ___________________________________________________________________________________

    3.) Refer to the figure below.

    (a) If there is only one employer in this labor market, then how much labor will be hired? ____________

    (b) What is the wage this employer will pay? ________________

    5.) Pam is thinking of buying a new printer. If she does, the printer will add $300 to her office's revenue right away as well as one, two, and three years from now.
    (a) Assuming an annual interest rate of 6%, what is the present value of this printer?

    (b) The printer costs $1,150. Would Pam buy this printer?

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    https://brainmass.com/economics/pricing-output-decisions/economics-marginal-labor-profit-321478

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    1.) Gordon's Pizzeria, a firm that is small relative to both the labor market and the pizza market, can hire workers at an hourly wage of $12. The 50th hour of labor added 4 pizzas to the firm's output, and each pizza can be sold for $10.

    a) How much does the 50th labor-hour add to the firm's profit?
    The 50th worker ...

    Solution Summary

    The solution examines the economics, marginal, labor and profits to determine if Pam should buy a printer.

    $2.19