Table 18-8 The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis. Labor Output 0 0 1 70 130 180 220 250 23 3 4 5 Refer to Table 18-8. Suppose this firm charges a price of $5 per unit of output and pays workers a wage equal to $160 per day. How many workers should this firm hire to maximize its profit? 2 workers 3 workers 4 workers 5 workers
Table 18-8 The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis. Labor Output 0 0 1 70 130 180 220 250 23 3 4 5 Refer to Table 18-8. Suppose this firm charges a price of $5 per unit of output and pays workers a wage equal to $160 per day. How many workers should this firm hire to maximize its profit? 2 workers 3 workers 4 workers 5 workers
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Table 18-8
The following table shows the production
function for a particular business. The
numbers represent the various labor and
output combinations the firm may choose for
its output on a daily basis.
Labor Output
0
0
70
130
180
220
250
123
4
5
Refer to Table 18-8. Suppose this firm
charges a price of $5 per unit of output and
pays workers a wage equal to $160 per day.
How many workers should this firm hire to
maximize its profit?
2 workers
3 workers
4 workers
5 workers
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