Use the following table to answer the following questions:

-If the workers are paid $10 per hour,the price of the product is $3,and the fixed cost of the business is $10,then how many workers should the business employ?
A) three
B) four
C) five
D) six
E) seven

Question

Use the following table to answer the following questions:
 
-If the workers are paid $10 per hour,the price of the product is $3,and the fixed cost of the business is $10,then how many workers should the business employ?
A) three 
B) four 
C) five 
D) six 
E) seven

Quizplus · Accepted Answer

To find the optimal number of workers, we need to use the formula:

Total cost = fixed cost + (variable cost per unit x units produced)

In this case, the variable cost per unit is the cost of the workers' wages, which is $10 per hour. Let's assume that each worker works for x hours per week. Then, the number of units produced per week is:

(units produced per worker per hour) x (hours worked per week per worker) x (number of workers)

From the table, we can see that each worker produces 30 units per hour. If the business employs x workers, then the total number of units produced per week is:

30x x

Now, we can use the formula to calculate the total cost:

Total cost = $10 + ($10/hour x x hours/week x 30 units/hour x x workers) / $3 per unit

Simplifying this equation, we get:

Total cost = $10 + $100x / $3

To find the optimal number of workers, we need to minimize the total cost. Taking the derivative of the total cost with respect to x, we get:

d(Total cost)/dx = 100/3

Setting this derivative equal to zero and solving for x, we get:

x = 4

Therefore, the optimal number of workers is four.

Use the Following Table to Answer the Following Questions