ALBA Corporation supplies lawn mowers for household needs. Producing this tool requires only five machines, which costs $500/machine. These workers will be recruited as needed in the labor market for $18,000 per person. With the simplicity of the manufacturing process, the lawn mower market is highly competitive. Therefore, the market price for one lawn mower is $80. Based on the production data in the following table: a. How many workers are needed if the company's goal is to maximize labor productivity? b. How much labor is needed if the company's goal is to maximize the number of lawn mower produced? c. How many workers should ALBA hire to maximize its profits? Sheet Metal Forming Machine Number of Panels Worker generated 1 600 2 2.000 3 3.000 4 3.600 5 3.600

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Managerial Economics
ALBA Corporation supplies lawn mowers for household needs. Producing this tool requires
only five machines, which costs $500/machine. These workers will be recruited as needed in
the labor market for $18,000 per person. With the simplicity of the manufacturing process, the
lawn mower market is highly competitive. Therefore, the market price for one lawn mower is
$80.
Based on the production data in the following table:
a. How many workers are needed if the company's goal is to maximize labor productivity?
b. How much labor is needed if the company's goal is to maximize the number of lawn mowers
produced?
c. How many workers should ALBA hire to maximize its profits?
Sheet Metal Forming
Machine
Number of Panels
generated
Worker
5
5
1
600
2
2.000
3
3.000
5
4
3.600
5
3.600
ASAP PLEASE.!!
i will Give Up Voteeee!!
Transcribed Image Text:Managerial Economics ALBA Corporation supplies lawn mowers for household needs. Producing this tool requires only five machines, which costs $500/machine. These workers will be recruited as needed in the labor market for $18,000 per person. With the simplicity of the manufacturing process, the lawn mower market is highly competitive. Therefore, the market price for one lawn mower is $80. Based on the production data in the following table: a. How many workers are needed if the company's goal is to maximize labor productivity? b. How much labor is needed if the company's goal is to maximize the number of lawn mowers produced? c. How many workers should ALBA hire to maximize its profits? Sheet Metal Forming Machine Number of Panels generated Worker 5 5 1 600 2 2.000 3 3.000 5 4 3.600 5 3.600 ASAP PLEASE.!! i will Give Up Voteeee!!
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