Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

We R' Write is really worried about their production line for pens. The company is concerned that they are employing more workers on the production

image text in transcribed

We R' Write is really worried about their production line for pens. The company is concerned that they are employing more workers on the production line than necessary. We R' Write has provided you with the production information for pens in the table below that corresponds to different numbers of workers on the production line.

  • Describe where the law of diminishing marginal productivity begins for We R' Write.
  • We R' Write currently uses 75 workers on the production line per day. Given the calculations in the table, is this number optimal? Why, or why not?
  • If you could make a suggestion regarding the optimal number of workers We R' Write should use on the production line, what would it be? Why?
image text in transcribed
Number of Toull Attract Marginal Price of Workers pur Produced per Marginal Value Value Worker pur Day Day Product Product Price per Pan Product Product Product Day 53.50 50.00 $560 15 1.000 56.67 67 $3.50 352. 50 $233 33 5233 33 $560 30 2.700 90.00 113 $3.50 $105.00 $315.00 5396.67 $560 45 5,100 113.33 160 53.50 $157.50 $396 67 $560.00 $560 60 7.900 131.67 187 $3.50 $210.00 5460.83 $653 33 $560 75 12,000 160.00 273 $3.50 $262 50 $560.00 $956.67 $560 90 15.700 174.44 247 $3.50 $315.00 $610 56 $863 33 $560 105 18.100 172.38 160 $3.50 $367.50 $603.33 $560.00 $560 120 20.300 167.17 147 $3.50 $420.00 $592 08 $513 33 $560 135 21.900 162 22 107 $3.50 $472.50 5567.78 $373 33 $560 150 22.300 148.67 27 $3 50 $525.00 $520 33 593.33 $560 165 22.300 135.15 $3.50 3577.50 $473.03 50.00 $560 180 21,500 119.44 $3.50 5630.00 $418 06 -$186.67 $560

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Econometrics A Modern Approach

Authors: Jeffrey Wooldridge

7th Edition

1337558869, 978-1337558860

More Books

Students also viewed these Economics questions

Question

13. Give four examples of psychological Maginot lines.

Answered: 1 week ago