The Marginal product of labor is the additional output per worker. Crew member delivers the greatest marginal product. The size of the crew that maximizes the firm's profits is and Zeus dollars in profit per month (please record your answer earns without a dollar sign and without a comma).

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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QUESTION 3
Zeus owns a factory which makes guitars which sell for $400 each. The number of guitars
he can make in a month depends on the size of his crew. He pays each person on his
crew $1500/month. He also pays rent on a building, which he has leased for the
remainder of the year for $2000/month. The table below indicates how many guitars can
be built, as a function of the size of his crew (the crew size excludes himself). You may
assume all other cost, such as materials, are 0.
Size of
Crew
Total # of
Guitars
1
4
2
8
3
19
4
28
5
40
6
50
7
58
8
earns
without a dollar sign and without a comma).
64
The size of the crew that maximizes the firm's profits is
9
67
10
70
11
72
12
The Marginal product of labor is the additional output per worker. Crew member
delivers the greatest marginal product.
74
13
and Zeus
dollars in profit per month (please record your answer
75
Transcribed Image Text:QUESTION 3 Zeus owns a factory which makes guitars which sell for $400 each. The number of guitars he can make in a month depends on the size of his crew. He pays each person on his crew $1500/month. He also pays rent on a building, which he has leased for the remainder of the year for $2000/month. The table below indicates how many guitars can be built, as a function of the size of his crew (the crew size excludes himself). You may assume all other cost, such as materials, are 0. Size of Crew Total # of Guitars 1 4 2 8 3 19 4 28 5 40 6 50 7 58 8 earns without a dollar sign and without a comma). 64 The size of the crew that maximizes the firm's profits is 9 67 10 70 11 72 12 The Marginal product of labor is the additional output per worker. Crew member delivers the greatest marginal product. 74 13 and Zeus dollars in profit per month (please record your answer 75
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