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Number of workers 0 1 2 3 4 5 6 number of pairs

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Unformatted text preview: any’s hourly output of socks varies with the number of workers hired, as shown below: Number of Number of Pairs Workers of Socks 0 1 2 3 4 5 6 0 20 35 45 50 53 55 a. If socks sell for $6 a pair, and the competitive market wage is $15 per hour, how many workers should Susie hire? b. If the price of socks falls to $5 a pair and the competitive market wage is $15, how many workers will Susie hire? a. They key to this problem is to notice that the additional revenue associated with producing another pair of socks is $5 (the price of $6 minus the $1 for the material). Susie will hire 5...
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