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 2 years ago

What s bakery output? What goals determine bakery output?

A toy manufacturing company has the following output figures per each number of workers employed, as...

A toy manufacturing company has the following output figures per each number of workers employed, as shown in the table below. Compute the short-run average and marginal products for each worker. Number of workers Output Average product Marginal product 1 1 200 2 2 500 3 3 780 4 4 400 5 4 800 1.2 Based on your calculations in 1.1, at what number of workers will diminishing returns start to set in? Explain your answer. 1.3 Distinguish between cardinal...

Carter Bakery bakes and sells bread at its retail outlets in Singapore. The average production and...

Carter Bakery bakes and sells bread at its retail outlets in Singapore. The average production and sales are 10,000 loaves per day. The company has the capacity to produce up to 15,000 loaves per day. The unit cost of production and selling (based on 10,000 loaves per day) is given below: Direct materials $0.40 Direct manufacturing labor 0.10 Variable manufacturing overhead 0.15 Fixed manufacturing overhead 0.35 Variable selling expense 0.05 Fixed selling expense 0.25 Total $1.30 The Bakery sells its...

A car wash firm calculates that its daily production (in number of cars washed) depends on...

A car wash firm calculates that its daily production (in number of cars washed) depends on the number n of workers it employs according to the formula P = 40n − 0.05n2 cars. Calculate the marginal product of labor at an employment level of 50 workers. HINT [See Example 3.] This means that, at an employment level of 50 workers, the firm's daily production will increase at a rate of cars per additional worker it hires.

Alex owns and operates a bakery. The bakery sells 3,000 cookies per month at a price...

Alex owns and operates a bakery. The bakery sells 3,000 cookies per month at a price of $2 each and 400 cakes per month at a price of $10 each. It costs Alex $1,500 per month to rent the space in which their bakery operates, $500 per month for utilities and $2,000 per month for the baking ingredients they use to make the cookies. Alex's previous job as a baker for a large restaurant paid an income of $3,000 per...

A certain competitive firm sells its output for $10 per unit. The 200th unit of output...

A certain competitive firm sells its output for $10 per unit. The 200th unit of output that the firm produces has a marginal cost of $11. Which of the following is not necessarily true? Select one: a. Production of the 200th unit of output increases the firm's total revenue by $10. b. Production of the 200th unit of output increases the firm's variable cost by $11. c. Production of the 200th unit of output increases the firm's total cost by...

It is presumed in the IS-LM model that: a.prices are fixed and output depends only on...

It is presumed in the IS-LM model that: a.prices are fixed and output depends only on supply b.prices are flexible and output depends only on supply c.prices are fixed and output depends only on expenditure d.prices are flexible and output depends only on expenditure

Bakery A sells bread for $2 per loaf that costs $0.80 per loaf to make. Bakery...

Bakery A sells bread for $2 per loaf that costs $0.80 per loaf to make. Bakery A gives a 75% discount for its bread at the end of the day. Demand for the bread is normally distributed with a mean of 300 and a standard deviation of 30. What order quantity maximizes expected profit for Bakery A? a) 324.00 b) 300.17 c) 325.25

Michelle runs a bakery that sells two kinds of cookies. Michelle knows the bakery must make...

Michelle runs a bakery that sells two kinds of cookies. Michelle knows the bakery must make at least 10 and at most 48 trays of the Nutty Squirrels. The bakery must also make between 3 and 72 trays of the Chocolate Decadence. The trays of Nutty Squirrels take 9 ounces of flour, while trays of Chocolate Decadence require 8 ounces of flour. The bakery only has 864 ounces of flour available. If trays of Nutty Squirrels generate $1.82 in profit,...

New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery...

New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $500,000. The ovens originally cost $690,000, had an estimated service life of 10 years, and an estimated residual value of $40,000. New Morning Bakery uses the straight-line depreciation method for all equipment. 1. Calculate the balance in the accumulated depreciation account at the end of the second year. Accumulated depreciation 2. Calculate the book value of the ovens...

Question