QUESTION 3Zeus owns a factory which makes guitars which sell for $400 each. The number of guitarshe can make in a month depends on the size of his crew. He pays each person on hiscrew $1500/month. He also pays rent on a building, which he has leased for theremainder of the year for $2000/month. The table below indicates how many guitars canbe built, as a function of the size of his crew (the crew size excludes himself). You mayassume all other cost, such as materials, are 0.Size ofCrewTotal # ofGuitars14283194285406507588earnswithout a dollar sign and without a comma).64The size of the crew that maximizes the firm's profits is9671070117212The Marginal product of labor is the additional output per worker. Crew memberdelivers the greatest marginal product.7413and Zeusdollars in profit per month (please record your answer75

The Marginal Product of Labor (MPL) describes the additional output (or product) that a firm can…

The Marginal product of labor is the additional output per worker. Crew member delivers the greatest marginal product. The size of the crew that maximizes the firm's profits is and Zeus dollars in profit per month (please record your answer earns without a dollar sign and without a comma).

The Marginal product of labor is the additional output per worker. Crew member delivers the greatest marginal product. The size of the crew that maximizes the firm's profits is and Zeus dollars in profit per month (please record your answer earns without a dollar sign and without a comma).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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