The figure below shows how the quantity of bicycles produced per week varies with the number of workers employed per week. Based on the figure, if the firm's goal is to maximize weekly output, the firm should employ _____.Figure 6-1

Question

Quizplus · Accepted Answer

From the figure, we see that the output increases steeply up to the fourth worker and then starts to increase at a slower rate beyond that. The firm's goal is to maximize weekly output, so it should employ the number of workers that gives the highest output. Therefore, based on the figure, the firm should employ four workers, as this is where the output is highest.

The Figure Below Shows How the Quantity of Bicycles Produced