The Widget Company Has the Following Production Function If Widgets Sell for $6 Each and the Wage Rate

question 37

Multiple Choice

The Widget Company has the following production function:
$$\begin{array} { c c } \begin{array} { c } \text { Number of } \\\text { Workers }\end{array} & \begin{array} { c } \text { Number of } \\\text { Widgets Produced }\end{array} \\\hline 0 & 0 \\1 & 9 \\2 & 17 \\3 & 24 \\4 & 30 \\5 & 35\end{array}$$
If widgets sell for $6 each and the wage rate is $33,how many workers will the company hire?

• A)0
• B)1
• C)2
• D)4

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Definitions:

Malpractice Action

A legal action filed against a professional person for failure to act in accordance with prevailing professional standards.

Properly Perform

To execute or carry out a task or duty correctly, efficiently, and up to the expected standards or specifications.

Generally Accepted Accounting Principles

Generally Accepted Accounting Principles (GAAP) refer to a common set of accounting rules, standards, and procedures used in preparing financial statements in the United States.

Financial Accounting Standards Board

An independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and organizations in the United States.