Can you please help me to solve these three questions. Thank you!! 5) The follow

Question

Can you please help me to solve these three questions. Thank you!!

5) The following table gives the number of cakes that could be baked daily at a local bakery, depending on the number of bakers a. Use the table below to calculate the MPL b. Do you observe the law of diminishing returns? c. Suppose each cake sells for $10. Calculate the MRPL d. Draw the MRPL, which is the demand curve for bakers.| e. If each baker is paid S60 per day, how many cakes will be baked and sold each day? How many bakers are hired? Number of Bakers 0 Number of Cakes 0 18 26 32 36 4

Explanation / Answer

MR

5b. Yes the Law of Diminishing returns exists after 2nd baker is hired.

5e. If each baker is paid $60 per day 18 cakes will be baked and 2 bakers will be hired when MRPL is maximum and aslo after the 2nd baker the law of diminish returns applies and profit decreases.

6. These tasks will will become more labor intensive as til now the non paid prisoners used to do all these. But now as they have got paying jobs they will not do these non paying jobs. Food preparation and cleaning serviceas need more man power than technologies and man power for which they have to pay.

Number of bakers number of cakes MPL

MR

MRPL(MRxMP) 0 0 -- -- -- 1 8 8 10 80 2 18 10 10 100 3 26 8 10 80 4 32 6 10 60 5 36 4 10 60

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