The A-1 Corporation supplies airplane manufacturers with preformed sheet metal panels that are used on the exterior of aircraft. Manufacturing these panels requires only five sheet metal-forming machines, which cost $500 each, and workers. These workers can be hired on an as-needed basis in the labor market at $9,000 each. Given the simplicity of the manufacturing process, the preformed sheet metal panel market is highly competitive. Therefore, the market price for one of A-1's panels is $70. Based on the production data in the accompanying table, how many workers should A-1 hire to maximize its profits? Machines Workers Output 5 0 0 5 1 600 2 1,000 3 1,290 4 1,480 5 5 1,600 5 6 1,680 Number of workers: 555

The A-1 Corporation supplies airplane manufacturers with preformed sheet metal panels that are used on the exterior of aircraft. Manufacturing these panels requires only five sheet metal-forming machines, which cost $500 each, and workers. These workers can be hired on an as-needed basis in the labor market at $9,000 each. Given the simplicity of the manufacturing process, the preformed sheet metal panel market is highly competitive. Therefore, the market price for one of A-1's panels is $70. Based on the production data in the accompanying table, how many workers should A-1 hire to maximize its profits? Machines Workers Output 5 0 0 5 1 600 2 1,000 3 1,290 4 1,480 5 5 1,600 5 6 1,680 Number of workers: 555

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.6P

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