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Calculating optimal number of workers hired

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Ms Smith, the owner and manager of the Clear Duplicating Service located near a major university, is contemplating keeping her shop open after 4 P.M. and until midnight. In order to so, she would have to hire additional workers. She estimates that the additional workers would generate the following total output (where each unit of output refers 100 pages duplicated). If the price of each unit of output is $10 and each worker hired must be paid $40 per day, How many workers should Ms. Smith hire?

Workers hired 0 1 2 3 4 5 6
Total Product 0 12 22 30 36 40 42

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Solution Summary

Solution describes the steps to calculate optimal number of workers hired.

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Please refer attached file for better clarity of table.

Workers hired, L Total output, TP MP* MRP
10*MP
0 0
1 12 ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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