The output of a bakery depends on the number of bakers employed. The bakery sells its...

The output of a bakery depends on the number of bakers employed. The bakery sells its good in a competitive product market at a price of P = $2. The daily wage of bakers is W = $50.

a) Fill in all of the blanks in the table below. Show all of your work! (Hint: notice that the number of bakers increases by increments of 2.)

Bakers	Output (units per day)	Marginal Product	Total Revenue	Marginal Revenue Product	Value of Marginal Product
0	0
2	60
4	110
6	150
8	180

b) How many workers should the bakery employ? Explain your answer.

Expert Solution

Rahul Sunny answered 1 year ago

What s bakery output? What goals determine bakery output?

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