Question

The questions below deal with the Gizmo Company, which has the following production function. If the real wage is equal to 8 widgets and only an integer number of workers can be hired the Gizmo company should hire 3 workers. 5 workers. 4 workers. 2 workers.

Answer 1

2 workers

Explanation:

Here is additional information for your question:

The questions below deal with the Gizmo Company, which has the following production function.

# Workers # Produce

0 0

1 10

2 19

3 26

4 31

5 34

If the real wage is equal to 8 widgets and only an integer number of workers can be hired the Gizmo company should hire?

My answer:

2 workers. (where MPL is less than real wage)