Imagine you've been hired as the manager of a firm producing a certain product X. The following schedule shows the total production per week of product X Additionally, assume each unit of product X sells for $10 per unit, workers can be hired in a competitive labor market for $500 per week, and the rental price of a unit of capital is $R per week Capital (K) Quantity (Q) Labor (L) 0 5 0 1 5 40 2 5 105 3 5 170 4 5 245 5 5 325 6 5 410 7 5 500 8 5 595 9 5 695 10 5 760 11 5 810 12 5 855 13 5 890 14 5 915 15 5 930 a. How many workers should be hired? To answer this question, append to the above table three new columns similar to columns (3), (4) and (5) of Table 5-2 in your textbook. Explain your final answer!
Imagine you've been hired as the manager of a firm producing a certain product X. The following schedule shows the total production per week of product X Additionally, assume each unit of product X sells for $10 per unit, workers can be hired in a competitive labor market for $500 per week, and the rental price of a unit of capital is $R per week Capital (K) Quantity (Q) Labor (L) 0 5 0 1 5 40 2 5 105 3 5 170 4 5 245 5 5 325 6 5 410 7 5 500 8 5 595 9 5 695 10 5 760 11 5 810 12 5 855 13 5 890 14 5 915 15 5 930 a. How many workers should be hired? To answer this question, append to the above table three new columns similar to columns (3), (4) and (5) of Table 5-2 in your textbook. Explain your final answer!
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Imagine you've been hired as the manager of a firm producing a certain product X. The
following schedule shows the total production per week of product X Additionally,
assume each unit of product X sells for $10 per unit, workers can be hired in a
competitive labor market for $500 per week, and the rental price of a unit of capital is
$R per week
Capital (K) Quantity (Q)
Labor (L)
0
5
0
1
5
40
2
5
105
3
5
170
4
5
245
5
5
325
6
5
410
7
5
500
8
5
595
9
5
695
10
5
760
11
5
810
12
5
855
13
5
890
14
5
915
15
5
930
a. How many workers should be hired? To answer this question, append to the above
table three new columns similar to columns (3), (4) and (5) of Table 5-2 in your
textbook. Explain your final answer!
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