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Your enterprising uncle opens a sandwich shop that employs 15 people. The employees are paid $20 per hour, and a sandwich sells for $5. If your uncle is maximizing his profit, the value of the marginal product of the last worker he hired is______ $ , and that worker's marginal product is sandwiches per hour.

Respuesta :

Answer:

The value of the marginal product of the last worker hired is $20

The marginal product of the last worker hired is 4 sandwiches per hour

Please kindly note the difference between the terms, value of marginal product and the term marginal product

Explanation:

Since the uncle is trying to maximize profit, then he will hire workers up to a point where the wages of the workers equals their marginal product value

Now, from the question, the value of the wages is $20 per hour, this also means that their marginal product too will be $20 per hour

This automatically means that the value of the marginal product of the last worker hired is also $20

Mathematically;

Value of marginal product = Marginal product * price

Thus, marginal product = value of marginal product/ price

= $20/$5 = 4

This means that the new worker hired marginal product is 4 sandwiches per hour

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