Chapter_1_Solutions_to_Book_Problems

Chapter_1_Solutions_to_Book_Problems - 2. Joe Fixit has an...

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appliance repairs hour minimum labor charge marginal revenue product What is the maximum hourly wage that he would pay an employee? Therefore, since we bring in an additional $90 per hour by hiring one more repair person, the maximum wage he Salary Benefits Total Sara gave up Bean Counters CPA at $35,000. Sam Samantha Tax Payment in Dollars Income in Dollars Tax Percentage 2. Joe Fixit has an appliance repair business. He has more business than he can handle and wants to h three appliances can be repaired each hour by a qualified person. Joe bills out labor at $45 per hour, b appliance repair estimates is $30 plus parts. What is the marginal revenue product of a qualified repair 3. Sam Smith is currently employed as a mechanical engineer and is paid $65,000 per year plus benefits wants to begin a consulting firm and decides to leave his current job. After his first year in business, S made $45,000 with his consulting business. Sam also notices that he paid $6,000 for a health insuranc first year. What was Sam’s opportunity cost?
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This note was uploaded on 04/11/2011 for the course AGEC 4403 taught by Professor D during the Fall '09 term at LSU.

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Chapter_1_Solutions_to_Book_Problems - 2. Joe Fixit has an...

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