Q1. Frank Gunter owns an apple orchard. He employs 57 apple pickers and pays them $15 per hour to pick apples, which he sells for $3.00 per box. If Frank is maximizing profits, what is the marginal revenue product of the last worker he hired? Elucidate what is worker's marginal product?
Q2. If the U.S. dollar were to appreciate substantially, what steps could a domestic manufacturer like Indiana, Cummins Engine Co. of Columbus which in advance to diminish the consequence of exchange rate fluctuation on company profitability?
Q3. If Boeing's dollar aircraft prices increase 20 percent and the yen/dollar exchange rate declines 15 percent, what effective price increase is facing Japan Air Lines for the purchase of a Boeing 747? Would Boeing's margin likely rise or fall if the yen then depreciated as well as competitor prices were unchanged? Why?