(Table: Total Product of Labor at Suzi's Sandwich Shop) Use Table: Total Product of Labor at Suzi's Sandwich Shop. Suzi can sell sandwiches for $10 each. If Suzi must pay each worker $40 per day, how many workers will she hire to maximize profit? $$\text { Table: Total Product of Labor at Suzi's Sandwich Shop } \
\begin{array} { | l | l | }
\hline \begin{array} { l }
\text { Quantity of Labor } \
\text { (workers) }
\end{array} & \begin{array} { l }
\text { Total Product of Labor } \
\text { (sandwiches per worker) }
\end{array} \
\hline 0 & 0 \
\hline 1 & 3 \
\hline 2 & 10 \
\hline 3 & 16 \
\hline 4 & 21 \
\hline 5 & 25 \
\hline 6 & 28 \
\hline
\end{array}$$

Question

(Table: Total Product of Labor at Suzi's Sandwich Shop) Use Table: Total Product of Labor at Suzi's Sandwich Shop. Suzi can sell sandwiches for $10 each. If Suzi must pay each worker $40 per day, how many workers will she hire to maximize profit? $$\text { Table: Total Product of Labor at Suzi's Sandwich Shop } \
\begin{array} { | l | l | } 
\hline \begin{array} { l } 
\text { Quantity of Labor } \
\text { (workers) }
\end{array} & \begin{array} { l } 
\text { Total Product of Labor } \
\text { (sandwiches per worker) }
\end{array} \
\hline 0 & 0 \
\hline 1 & 3 \
\hline 2 & 10 \
\hline 3 & 16 \
\hline 4 & 21 \
\hline 5 & 25 \
\hline 6 & 28 \
\hline
\end{array}$$

Quizplus · Accepted Answer

To maximize profit, Suzi should hire workers until the marginal cost of hiring an additional worker equals the marginal revenue from the sandwiches they produce. The marginal product of the 5th worker is 4 sandwiches (25-21), and the revenue from these sandwiches is $40 (4 sandwiches * $10 each), which equals the cost of hiring the worker ($40). Hiring more workers would result in a marginal cost greater than marginal revenue.