Optimal Input Level

question 4

Essay

Optimal Input Level. U-Do-It Furniture, Inc., sells hardwood chairs, in both kits and fully assembled forms. Customers who assemble their own chairs benefit from the lower kit price of $35 per chair. "Full-service" customers enjoy the luxury of an assembled chair, but pay a higher price of $60 per chair. Both kit and fully assembled chair prices are stable. The company has observed the following relation between the number of assembly workers employed per day and assembled chair output:

A. Construct a table showing the net marginal revenue product derived from assembly worker employment.
B. How many assemblers would U-Do-It Furniture employ at a daily wage rate of $75?
C. What is the highest daily wage rate U-Do-It Furniture would pay to hire four assemblers per day?

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Definitions:

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Collective, organized efforts aiming to promote or resist change in society or its institutions.

Jurgen Habermas

A German sociologist and philosopher known for his theory on the public sphere and communicative action.

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A historical period roughly spanning from the 16th to the 18th century, characterized by significant changes in areas such as science, politics, and society, marking the transition from the medieval to the modern world.

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A Polish sociologist known for his analysis of the links between modernity, globalization, and consumerism, and for coining the term "liquid modernity."