Shown in the following table is the relationship between the number of
workers per hour and the total product per hour for a tire company. The
relationship between output produced per hour and the price at which it
can be sold is also given. Assume that the cost of materials is $6.50.
Complete the table.
If the wage rate is $5.00 per hour, how many workers should this firm
hire to maximize profits? Why/
Workers (per hour) Quantity (Total Product per hour) Price of Output TR
ArcMR Arc Net MR of Labor ArcMP of Labor ArcMR Product of Labor
0 0 $50.00
10 200 $40.00
20 300 $35
30 350 $32.50
40 380 $31.00
50 400 $30.00
60 410 $29.50
Economics Homework Solutions
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