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b) The following table provides information about production at the XYZ-TV Company. Number of Workers TVs Produced 0 0 1 35 2 68 3 99 4 128 5 155 How many workers will the XYZ-TV Company hire if the going wage for TV production workers is $16,000? Show your calculation in detail.

1 Answer

3 votes

Answer:

5

Explanation:

Given the following :

Number of workers - - TVs produced

0 - - - - - - - - - - - - - - - - - 0

1 - - - - - - - - - - - - - - - - - - 35

2 - - - - - - - - - - - - - - - - - 68

3 - - - - - - - - - - - - - - - - - - 99

4 - - - - - - - - - - - - - - - - - - 128

5 - - - - - - - - - - - - - - - - - - 155

We need to calculate the marginal product :

Workers - - - marginal product - - - value of m/p

0 - - - - - - - - - - - ____ - - - - - - - - - - - - - - __

1 - - - - - - - - - - - 35 (35 - 0) - - - - - - 35000

2 - - - - - - - - - - - - 33 (68 - 35) - - - - 33000

3 - - - - - - - - - - - - 31 (99 - 68) - - - - - 31000

4 - - - - - - - - - - - - 29 (128 - 99) - - - - - 29000

5 - - - - - - - - - - - - 27 (155 - 128) - - - 27000

The marginal product shows the change in output due to one additional unit of a certain input of production, in this case, number of workers. If the going wage of workers is $16,000, the company can afford to hire up to 5 workers and still make profit.

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