Question
A jewelry maker currently employs 8 workers at $90,000 each per year and uses two machines. The number of workers cannot be changed. The output
A jewelry maker currently employs 8 workers at $90,000 each per year and uses two machines. The number of workers cannot be changed. The output of each machine depends on the number of workers that are assigned to it. Each worker can only be assigned to one machine. Every jewelry piece is sold for $20,000. The output table is reported in the attachment I've shared.
(for instance, the table says that if the firm assigns 2 workers to machine 1 and 6 workers to machine 2, it will produce 18 pieces on machine 1 and 50 pieces on machine 2; the total output, 78 pieces, will yield a revenue of $1,560,000)
Use marginal analysis (not brute force) to find the optimal assignment of workers to machines and the yearly profit.
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