This topic contains a solution. Click here to go to the answer

Author Question: In order for Charlie Trotter's, an upscale restaurant in Chicago, to maximize profit from the ... (Read 57 times)

cherise1989

  • Hero Member
  • *****
  • Posts: 555
In order for Charlie Trotter's, an upscale restaurant in Chicago, to maximize profit from the employment of chefs, the restaurant should hire chefs up to the point where the value of marginal product equals the wage rate for chefs.
 
  Is the statement correct or incorrect?

Question 2

How do the marginal and average products of labor affect a firm's marginal and average variable costs in the short run?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

JaynaD87

  • Sr. Member
  • ****
  • Posts: 368
Answer to Question 1

The statement is correct. In order for any firm to maximize its profit, it hires workers until the wage rate equals the value of marginal product.

Answer to Question 2

Over the range of output for which the marginal product is increasing, marginal cost is decreasing and vice versa. At the level of output at which the marginal product is at its maximum, marginal cost will be at its minimum. And, over the range of output for which the average product is increasing, average variable cost is decreasing and vice versa. Finally, the level of output at which the average product is at its maximum is the same level at which average variable cost is at its minimum.




cherise1989

  • Member
  • Posts: 555
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review


6ana001

  • Member
  • Posts: 311
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

For a complete list of videos, visit our video library