Table below provides production data for Peg's Pie Shop, indicating the output per day with different numbers of employees. The shop sells its pies and hires its labor in perfectly competitive markets. Currently, the equilibrium price of a pie is $5, and the equilibrium wage rate is $80 per day. If the total fixed costs are equal $100 and labor is the only variable input and this firm hires the profit-maximizing number of workers, it will earn profit equal to Labor (#workers) 0 1 2 3 4 5 Pies per day 0 20 60 90 110 120

Table below provides production data for Peg's Pie Shop, indicating the output per day with different numbers of employees. The shop sells its pies and hires its labor in perfectly competitive markets. Currently, the equilibrium price of a pie is $5, and the equilibrium wage rate is $80 per day. If the total fixed costs are equal $100 and labor is the only variable input and this firm hires the profit-maximizing number of workers, it will earn profit equal to Labor (#workers) 0 1 2 3 4 5 Pies per day 0 20 60 90 110 120

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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