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

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?

Number of Workers per Day

Pens Produced per Day

Average Product

Marginal Product

Price per Pen

Total Value Product

Average Value Product

Marginal Value Product

Price of Worker per Day

0

0

---

---

$3.50

$0.00

---

---

$560

15

1,000

66.67

67

$3.50

$52.50

$233.33

$233.33

$560

30

2,700

90.00

113

$3.50

$105.00

$315.00

$396.67

$560

45

5,100

113.33

160

$3.50

$157.50

$396.67

$560.00

$560

60

7,900

131.67

187

$3.50

$210.00

$460.83

$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

$567.78

$373.33

$560

150

22,300

148.67

27

$3.50

$525.00

$520.33

$93.33

$560

165

22,300

135.15

0

$3.50

$577.50

$473.03

$0.00

$560

180

21,500

119.44

-53

$3.50

$630.00

$418.06

-$186.67

$560

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Economics Today The Macro View

Authors: Roger LeRoy Miller

18th Edition

9780133884876

Students also viewed these Economics questions