Suppose Jill owns a pizzeria In the short run the number of

Suppose Jill owns a pizzeria. In the short run the number of pizza overs Jill leases is fixed at 2. The table below illustrates her productivity of labor as she hires workers. If current wages are $10 per hour, what is her Marginal Cost?(Show your work and explain the process for selection)

Labor

MP

Wage

MC

1

200

2

250

3

100

4

50

5

25

6

15

Solution

Wages = Numbe rof labour * wage rate

MC = MP *2