This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In order for Charlie Trotter's, an upscale restaurant in Chicago, to maximize profit from the ... (Read 63 times)

cherise1989

  • Hero Member
  • *****
  • Posts: 555
on: Jun 29, 2018
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
Reply #1 on: Jun 29, 2018
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

tandmlomax84

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

A parade for Grover Cleveland in Chicago in 1892, by John Klir. Music, mirth, real drama—a president A parade for Grover Cleveland in Chicago in 1892, by John Klir. Music, mirth, real drama—a president
If drug elimination mechanisms become saturated, a drug may exhibit zero-order elimination. If drug elimination mechanisms become saturated, a drug may exhibit zero-order elimination.
Higher-Order Conditioning Higher-Order Conditioning
Explain the assumptions that must be satisfied in order to validly use the one-way ANOVA ... Explain the assumptions that must be satisfied in order to validly use the one-way ANOVA ...
The order of gene transfer in four Hfr strains The order of gene transfer in four Hfr strains
Directions: Fill in the correct number or word(s). Order: Lantus U-100 insulin 68 units subcut ... Directions: Fill in the correct number or word(s). Order: Lantus U-100 insulin 68 units subcut ...
Video: Hyperglycemia Animation

For a complete list of videos, visit our video library