The following table shows the total number of pizzas produced by 7 workers.
Table 16-1 $$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Number of } \
\text { workers }
\end{array} & \begin{array} { c }
\text { Total number of pizzas } \
\text { produced per day }
\end{array} \
\hline 0 & 0 \
\hline 1 & 6 \
\hline 2 & 13 \
\hline 3 & 18 \
\hline 4 & 21 \
\hline 5 & 23 \
\hline 6 & 22 \
\hline 7 & 20 \
\hline
\end{array}$$
-Refer to Table 16-1.If the pizza industry is competitive,the price of a pizza is $10,and the daily wage of a worker $30,then the pizza shop will hire _____ workers to maximize profits.
A)2
B)3
C)4
D)5

Question

The following table shows the total number of pizzas produced by 7 workers.
Table 16-1 $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Number of } \
\text { workers }
\end{array} & \begin{array} { c } 
\text { Total number of pizzas } \
\text { produced per day }
\end{array} \
\hline 0 & 0 \
\hline 1 & 6 \
\hline 2 & 13 \
\hline 3 & 18 \
\hline 4 & 21 \
\hline 5 & 23 \
\hline 6 & 22 \
\hline 7 & 20 \
\hline
\end{array}$$
-Refer to Table 16-1.If the pizza industry is competitive,the price of a pizza is $10,and the daily wage of a worker $30,then the pizza shop will hire _____ workers to maximize profits.
A)2
B)3
C)4
D)5

Quizplus · Accepted Answer

The pizza shop will hire 4 workers to maximize profits because the marginal revenue product of the fourth worker is greater than the marginal cost of the fourth worker.

The Following Table Shows the Total Number of Pizzas Produced