Math/Physic/Economic/Statistic Problems
Determine the marginal revenue product of labor for workers in the organization, given the wage rate. For each additional labor input Daniel adds, how much additional revenue does he get?
Determine how many workers Daniel should employ, explaining the impact of the marginal revenue product of labor on organizational decision making.
How many total worker should Daniel employ?
Why does an organization stop hiring workers? Make sure you explain the concept of diminishing return.
Daniel is considering the cost of running the business and whether or not he should quit his day job as a customer service specialist earning $45,000 annually. To help Daniel make this decision, answer the following:
Categorize the economic costs below as fixed or variable in the short run. Explain your rationale for each one and whether or not they will differ in the long run:
Rent
Wages
Raw materials
Energy costs
Phone and internet services
Complete the Daily Production Cost Schedule tab in the Financial Data spreadsheet to determine the annual profit/loss of Daniel’s business based on profit-maximizing production. Include the following in your response:
What is the annual profit/loss of Daniel’s business?
What is the profit-maximizing production level? Explain the process you followed to determine the profit-maximizing production level (quantity).
What would happen if Daniel produces above that amount?
