Economics~Labor Economics~Labor supply and demand~ID236
Consider a factory that employs two kinds of workers: production workers and supervisors. The factory sells its output for $0.50 per unit. The firm currently employs 50 production workers at a wage of $100 per day. The firm cannot adjust the number of production workers it employs in the short run, but it can adjust the number of supervisors it employs. The daily wage of supervisors is $500, and you have the following information about the firm’s daily (short run) production:
|
Number of Supervisors |
Units of Output Produced per Day |
|
0 |
11 000 |
|
1 |
14 800 |
|
2 |
18 000 |
|
3 |
19 500 |
|
4 |
20 200 |
|
5 |
20 600 |
How many supervisors should the firm hire?
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