A Firm Sells Bagels for 50 Cents Each

question 23

Essay

A firm sells bagels for 50 cents each. With 10 workers the firm produces 100 dozen per hour, and with 12 workers it produces 123 dozen per hour. If the firm has 12 workers at the competitive equilibrium, what is the marginal revenue product of labor and the market wage rate, assuming an average 8-hour shift per worker?

---

Definitions:

Cytoplasm

The jelly-like substance within a cell, excluding the nucleus, that contains organelles, enzymes, and the cytoskeleton, providing a site for most cellular processes.

Peptidoglycan Cell Wall

The peptidoglycan cell wall is a rigid and supportive layer found in the cell walls of most bacteria, providing structural strength and protecting against osmotic pressure.

Nuclear Membrane

The lipid bilayer membrane which encloses the nucleus, separating its contents from the cytoplasm and regulating molecule passage.

Ribosomes

The cellular structures responsible for protein synthesis, found floating freely within the cytoplasm or attached to the endoplasmic reticulum.