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

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. $$\begin{array} { | c | c | } 
\hline \text { Number of Workers } & \text { Pizzas Baked Per Day } \
\hline 0 & 0 \
\hline 1 & 10 \
\hline 2 & 18 \
\hline 3 & 24 \
\hline 4 & 30 \
\hline 5 & 32 \
\hline
\end{array}$$ How many workers will Joe hire if he must pay each one $35 a day?
A) 1
B) 2
C) 3
D) 4

Quizplus · Accepted Answer

The marginal product of labor is 8 pizzas per worker. At a wage of $35, Joe will hire 2 workers.

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