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A-1 Corporation Maximizing Profits

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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 $80. Based on the production data in the accompanying table, how many workers should A-1 hire to maximize its profits?
sheet metal forming machines workers no.of panels produced
5 0 0
5 1 600
5 2 1000
5 3 1290
5 4 1480
5 5 1600
5 6 1680

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The A-1 Corporation supplies airplane manufacturers with preformed sheet metal panels that are used on the exterior of aircraft.

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Radhika Lakshmi, MPhil
Education
  • MPhil, Madurai Kamaraj University
  • MCom, Annamalai University
  • IATA, International Air Transport Association
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