Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5.
$$\begin{array} { | c | c r }
\hline \text { Number of Warkers } & \text { Pizzas Baked Per Day } \
\hline 0 & & 0 \
\hline 1 & & 10 \
\hline 2 & & 18\
\hline 3 & & 24 \
\hline 4 & & 30 \
\hline 5 & &32 \
\hline
\end{array}$$ How many workers will Joe hire if he must pay each one $35 a day?

Question

Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5.  
$$\begin{array} { | c | c r } 
\hline \text { Number of Warkers } & \text { Pizzas Baked Per Day } \
\hline 0 & & 0 \
\hline 1 & & 10 \
\hline 2 & & 18\
\hline 3 & & 24 \
\hline 4 & & 30 \
\hline 5 & &32 \
\hline
\end{array}$$ How many workers will Joe hire if he must pay each one $35 a day?

Quizplus · Accepted Answer

Joe's total revenue is $5 per pizza. If he pays each worker $35 a day, then he will need to sell at least 7 pizzas per day to break even. With 2 workers, he can produce 18 pizzas per day, which is more than enough to break even.

Production Data for Joe's Pizza Parlor Are as Follows How Many Workers Will Joe Hire If He Must Pay