Question
Apec is a small, expansive company that manufactures test equipment for infectious diseases. The company currently has 8 employees and a fast machinery park. The
Apec is a small, expansive company that manufactures test equipment for infectious diseases.
The company currently has 8 employees and a fast machinery park. The test equipment is sold in a competitive market at the price of SEK 25 per unit.
The price per working hour is SEK 500 and per machine SEK 830.
CEO Josefin is now considering expanding operations by hiring additional and workers.
During the past year, production has risen as more workers have been hired. With 5 employees producers 60 units per hour, with 6 employees 100 units per hour, with 7 employees 120 units per hour and with 8 employees 130 units per hour.
Another employee is expected to increase production to 135 units per hour.
Josefin, however, is unsure and asks you for advice. Is it reasonable to hire additional and workers? Is your workforce today a fair share? How should she reason? Explain your reasoning with words and with calculations based on Apec's situation.
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