Number of workers 0 1 2 3 5 6 Units sold (per day) 8 13 17 20 22 23 23 Assume that workers are paid $20 per hour and work eight hours. (i) How many employees should Marie hire? (ii) What will be the total revenue of her store per day?

Number of workers 0 1 2 3 5 6 Units sold (per day) 8 13 17 20 22 23 23 Assume that workers are paid $20 per hour and work eight hours. (i) How many employees should Marie hire? (ii) What will be the total revenue of her store per day?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 4.2IP

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Question

Marie Johnston is a manager at a cell phone store and is making hiring decisions. The number of cell phones her store sells per day depends on the number of workers she hires, as shown in the accompanying table. She sells each cell phone for $300

cell phones her store sells per day depends on the number of workers she hires, as shown in the accompanying
table. She sells each cell phone for $300.
Number of Units sold (per
workers
day)
0
8
1
13
2
17
3
20
4
22
5
23
6
23
Assume that workers are paid $20 per hour and work eight hours.
(i) How many employees should Marie hire?
(ii) What will be the total revenue of her store per day?

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