Suppose the MC Hammer Company produces hammers. The number of hammers it can produce each hour depends on the number of workers it hires, as shown in the accompanying table. In addition, each hammer can be sold for $2 more than the cost of the materials needed to produce it. $$\begin{array} { | c | c | }
\hline \text { Number of warkers per hour } & \text { Number of humers per haur } \
\hline 0 & 0 \
\hline 1 & 20 \
\hline 2 & 36 \
\hline 3 & 48 \
\hline 4 & 56 \
\hline 5 & 60 \
\hline
\end{array}$$
If the hourly wage for people who make hammers is $17 per hour, then how many workers should the MC Hammer Company hire each hour?
A)1
B)2
C)3
D)4

Question

Suppose the MC Hammer Company produces hammers. The number of hammers it can produce each hour depends on the number of workers it hires, as shown in the accompanying table. In addition, each hammer can be sold for $2 more than the cost of the materials needed to produce it. $$\begin{array} { | c | c | } 
\hline \text { Number of warkers per hour } & \text { Number of humers per haur } \
\hline 0 & 0 \
\hline 1 & 20 \
\hline 2 & 36 \
\hline 3 & 48 \
\hline 4 & 56 \
\hline 5 & 60 \
\hline
\end{array}$$  
If the hourly wage for people who make hammers is $17 per hour, then how many workers should the MC Hammer Company hire each hour?
A)1
B)2
C)3
D)4

Quizplus · Accepted Answer

The company should hire 3 workers because the marginal profit (additional revenue from selling extra hammers minus the cost of hiring an additional worker) is maximized at this point.

Suppose the MC Hammer Company Produces Hammers If the Hourly Wage for People Who Make Hammers Is