(Table) the Amount of Labor and Corresponding Output Are Provided

question 49

Multiple Choice

(Table) The amount of labor and corresponding output are provided in the table. The price per unit of output is $11.50. The wage paid per day is $115. To maximize economic profit, how many people should the firm hire?
$\begin{array}{|c|c|}\hline \text { Labor } & \text { Output } \\\hline 0 & 0 \\\hline 1 & 7 \\\hline 2 & 19 \\\hline 3 & 34 \\\hline 4 & 47 \\\hline 5 & 57 \\\hline\end{array}$

• A) 2 workers
• B) 3 workers
• C) 4 workers
• D) 5 workers

---

Definitions:

Total Manufacturing Costs

The aggregate of direct materials, direct labor, and manufacturing overhead incurred in the production of goods.

Work-In-Process

Items that are in the stage of production but are not yet complete, representing a cost that includes materials, labor, and overhead.

Finished Goods

Items that have finished being manufactured and are prepared to be offered to consumers.

Manufacturing Cost

The total expense involved in the production of goods, including labor, materials, and overhead costs.