Explore BrainMass
Share

Explore BrainMass

    Finding optimal number of workers

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Based on the below information, if the wage rate is $500 and the price of output is $5, how many workers should the firm hire?

    Number of workers Output
    0 0
    1 50
    2 110
    3 300
    4 450
    5 590
    6 665
    7 700
    8 725
    9 710
    10 705

    © BrainMass Inc. brainmass.com April 3, 2020, 8:20 pm ad1c9bdddf
    https://brainmass.com/economics/output-and-costs/finding-optimal-number-workers-315336

    Solution Preview

    Please refer attached file for better clarity of table.

    Solution:

    L Q MPL* P MP*P MLC
    0 0 $5 $0 $500
    1 50 $50 $5 $250 $500
    2 110 $60 $5 $300 $500
    3 300 $190 $5 $950 $500
    4 450 $150 $5 ...

    Solution Summary

    The solution depicts the steps to determine optimal number of workers in the given case. The wage rate and price output is provided.

    $2.19

    ADVERTISEMENT