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

question 54

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

---

Definitions:

Outsourcing

The practice of hiring third-party vendors to perform tasks, handle operations or provide services that are either difficult to manage or outside the core business competency.

Morale

The level of confidence, enthusiasm, and discipline of a person or group at a particular time, especially in a workplace context.

Productivity

This is the measure of efficiency in which goods and services are produced, often evaluated in terms of output per time invested.

Top Management

The highest level of management in an organization, including positions such as CEO, CFO, and other senior executives.