Katie owns a cake bakery, employs 10 workers, and pays them $15 per hour. She sells each cake for $15. If Katie is maximizing profits, the value of the marginal product (VMP) for the last worker hired is $_________ . The last worker hired has a marginal product of ________ cakes. (If your answer is not a whole number, carry your answer to two decimal places.)
Ans) if Katie is maximizing profits, the value of the marginal product (VMP) for the last worker hired is $ 15 . The last worker hired has a marginal product of 1 cakes.
VMP = wage = 15
Marginal product = VMP/ price = 15/15 = 1
Katie owns a cake bakery, employs 10 workers, and pays them $15 per hour. She sells...
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