ALBA Corporation supplies lawn mowers for household needs. Producing this tool requires only five machines, which costs $500/machine. These workers will be recruited as needed in the labor market for $18,000 per person. With the simplicity of the manufacturing process, the lawn mower market is highly competitive. Therefore, the market price for one lawn mower is $80. Based on the production data in the following table: a. How many workers are needed if the company's goal is to maximize labor productivity? b. How much labor is needed if the company's goal is to maximize the number of lawn mower produced? c. How many workers should ALBA hire to maximize its profits? Sheet Metal Forming Machine Number of Panels Worker generated 1 600 2 2.000 3 3.000 4 3.600 5 3.600
ALBA Corporation supplies lawn mowers for household needs. Producing this tool requires only five machines, which costs $500/machine. These workers will be recruited as needed in the labor market for $18,000 per person. With the simplicity of the manufacturing process, the lawn mower market is highly competitive. Therefore, the market price for one lawn mower is $80. Based on the production data in the following table: a. How many workers are needed if the company's goal is to maximize labor productivity? b. How much labor is needed if the company's goal is to maximize the number of lawn mower produced? c. How many workers should ALBA hire to maximize its profits? Sheet Metal Forming Machine Number of Panels Worker generated 1 600 2 2.000 3 3.000 4 3.600 5 3.600
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 9SQ
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