Question

Your enterprising uncle opens a sandwich shop that employs 6 people. The employees are paid $12 per hour, and a sandwich sells for $4.
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.

Answer 1

Answer:

if your uncle is maximizing his profit, the value of the marginal product of the last worker he hired will be $12 while that of worker's marginal product will be $2 sandwiches per hour.

Explanation:

Marginal Revenue Product can be seen as the way in which additional revenue is been generated by additional workers.

Price =$6

Wage = $12

Since your enterprising uncle is hiring workers such that their wage is been equals the marginal revenue product.

Hence,

wage = Marginal revenue product

12 = 12

In a situation where the marginal revenue product is 12 then the marginal product will be:

Marginal Revenue Product = Price x MP

MP = Marginal Revenue Product / Price

MP = 12 / 6

MP = 2

Therefore if your uncle is maximizing his profit, the value of the marginal product of the last worker he hired will be $12 while that of worker's marginal product will be $2 sandwiches per hour.

Answer 2

Marginal revenue is the excess revenue gained by each product being produced over the actual production limit.

The value of the marginal product of the last hired worker is $12 while the marginal product is 2 sandwiches per hour.

Computation:

The marginal revenue product:

$\text{Marginal Revenue Product} = \text{Price} \times \text{Marginal Product}\\\\=\ 6\times2\\\\=\ 12$

The marginal product is:

$\text{Marginal Product}=\dfrac{\text{Marginal revenue product}}{\text{Price}}\\\\=\dfrac{12}{6}\\\\=2$

Therefore, for maximizing the profit the owner should have the marginal product of the last worker as $12 while the same for the worker's marginal product will be 2 sandwiches per hour.

To know more about marginal revenue, refer to the link:

https://brainly.com/question/14769692