Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

According the table given below and answer the following questions Table 1. Brownie output for different numbers of workers. One oven. Workers output( brownies) 30.0

According the table given below and answer the following questions
image text in transcribed image text in transcribed image text in transcribed 

Table 1. Brownie output for different numbers of workers. One oven. Workers output( brownies) 30.0 58.5 85.5 111.0 135.0 157.5 178.5 198.0 216.0 232.5 247.5 261.0 273.0 283.5 292.5 300.0 306.0 310.5 313.5 315.0 10 11 12 13 14 15 16 17 18 19 20 a) (I point) Nick Seaman (Black Sheep Bakery in Amherst) has estimated the number of brownies produced for different numbers of workers (see table 1). Why does output increase with more workers? Why does output increase at a diminishing rate? Would output increase at a diminishing rate if there were additional ovens and workspace? b) (I point) Brownies sell for $2.00 each and each requires $0.75 in ingredients. (The Black Sheep uses quality chocolate!) Graph the demand for labor as a function of the wage using the data in table 1. What happens to the number of workers hired when wages go up? How many workers will be hired and how many brownies made at a wage of $30? How many workers will be hired and how many brownies made if the wage falls to $15?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

a Output increases with more workers because each additional worker contributes to the production of brownies However output increases at a diminishin... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Stats Data And Models

Authors: Richard D. De Veaux, Paul D. Velleman, David E. Bock

4th Edition

321986490, 978-0321989970, 032198997X, 978-0321986498

More Books

Students also viewed these Economics questions