The table below describes the relationship between the number of workers hired by a call center each hour and the number of calls the call center can make each hour. The call center has only 1 telephone. The telephone costs the firm $5/hour (regardless of how many calls are made), and each worker is paid $10 per hour. $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Calls Per } \
\text { Hour }
\end{array} & \begin{array} { c }
\text { Number of } \
\text { Telephones } \
\text { Per Hour }
\end{array} & \begin{array} { c }
\text { Number of } \
\text { Workers } \
\text { Per Hour }
\end{array} \
\hline 1 & 1 & 2 \
\hline 2 & 1 & 4 \
\hline 6 & 1 & 6 \
\hline 16 & 1 & 8 \
\hline 22 & 1 & 10 \
\hline 24 & 1 & 12 \
\hline
\end{array}$$ Average variable cost is minimized when output is approximately:

Question

The table below describes the relationship between the number of workers hired by a call center each hour and the number of calls the call center can make each hour. The call center has only 1 telephone. The telephone costs the firm $5/hour (regardless of how many calls are made), and each worker is paid $10 per hour. $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Calls Per } \
\text { Hour }
\end{array} & \begin{array} { c } 
\text { Number of } \
\text { Telephones } \
\text { Per Hour }
\end{array} & \begin{array} { c } 
\text { Number of } \
\text { Workers } \
\text { Per Hour }
\end{array} \
\hline 1 & 1 & 2 \
\hline 2 & 1 & 4 \
\hline 6 & 1 & 6 \
\hline 16 & 1 & 8 \
\hline 22 & 1 & 10 \
\hline 24 & 1 & 12 \
\hline
\end{array}$$ Average variable cost is minimized when output is approximately:

Quizplus · Accepted Answer

Average variable cost is minimized when the number of calls per hour is 22, as this is the point where the cost per call (considering worker wages) is lowest before it starts increasing again.

The Table Below Describes the Relationship Between the Number of Workers