Based on the table below, how many workers will the firm employ in order to maximize profits? $$\begin{array}{l}
\begin{array} { c c c c }
\text { workers } & \text { Output } & \text { Product Price } & \text { Wage Rate } \
\hline 8 & 100 & \$ 28 & \$ 375 \
9 & 130 & \$ 28 & \$ 400 \
10 & 162 & \$ 28 & \$ 425 \
11 & 192 & \$ 28 & \$ 450 \
12 & 220 & \$ 28 & \$ 475 \
13 & 246 & \$ 28 & \$ 500 \
14 & 270 & \$ 28 & \$ 25
\end{array}
\end{array}$$

Question

Based on the table below, how many workers will the firm employ in order to maximize profits? $$\begin{array}{l}
\begin{array} { c c c c } 
\text { workers } & \text { Output } & \text { Product Price } & \text { Wage Rate } \
\hline 8 & 100 & \$ 28 & \$ 375 \
9 & 130 & \$ 28 & \$ 400 \
10 & 162 & \$ 28 & \$ 425 \
11 & 192 & \$ 28 & \$ 450 \
12 & 220 & \$ 28 & \$ 475 \
13 & 246 & \$ 28 & \$ 500 \
14 & 270 & \$ 28 & \$ 25
\end{array}
\end{array}$$

Quizplus · Accepted Answer

The firm will maximize profits by employing 12 workers. At this level of employment, the firm's total revenue is $28 * 220 = $6,160. The firm's total costs are $475 * 12 = $5,700. Therefore, the firm's profit is $6,160 - $5,700 = $460.

Based on the Table Below, How Many Workers Will the Firm