Using the following information, what is the optimal number of workers for the f

Question

Using the following information, what is the optimal number of workers for the firm to hire?  Assume perfect competition in the input and output markets where the price of the firm's output is $10 and the wage rate in the input market is $110.  Please show your work.

# of Workers-----Output

0--------------------0

1--------------------50

2--------------------120

3--------------------210

4--------------------280

5--------------------330

6--------------------360

7--------------------380

8--------------------390

9--------------------390

Words:0

Explanation / Answer

Profit is maximum @ #7 workers and 380 output

worker output sales@10 Total wage@110 Profit 0 0 0 0 0 1 50 500 110 390 2 120 1200 220 980 3 210 2100 330 1770 4 280 2800 440 2360 5 330 3300 550 2750 6 360 3600 660 2940 7 380 3800 770 3030 Maximum 8 390 3900 880 3020 9 390 3900 990 2910

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.