The following question(s) deal with The Gizmo Company, which has the following production function:

-If the real wage is equal to 8 widgets,and only an integer number of workers can be hired,the Gizmo company should hire
A) 2 workers.
B) 3 workers.
C) 4 workers.
D) 5 workers.
E) 6 workers.

Question

The following question(s) deal with The Gizmo Company, which has the following production function:
 
-If the real wage is equal to 8 widgets,and only an integer number of workers can be hired,the Gizmo company should hire
A) 2 workers. 
B) 3 workers. 
C) 4 workers. 
D) 5 workers. 
E) 6 workers.

Quizplus · Accepted Answer

The real wage is equal to 8 widgets, so the company should hire the number of workers that will produce 8 widgets. 2 workers will produce 16 widgets, which is too much, and 3 workers will produce 24 widgets, which is also too much. Therefore, the company should hire 2 workers.

The Following Question(s) Deal with the Gizmo Company, Which Has