Taco King produces tacos The market for tacos is perfectly competitive, and the
ID: 1130678 • Letter: T
Question
Taco King produces tacos The market for tacos is perfectly competitive, and the price is $4.00 a taco. The labor market is compettive.) and the wage rate is $120.00 a day. The table shows part of the workers' total product schedule. How many workers will Taco King hire to maximize its profx? Workers Tacos per day 13 79 103 115 How many tacos a day will it produce? Taco King wil hireworkers to maximize profit. Taco King producestacos a day to maximize prof. Enter your answer in each of the answer boxes. 2Explanation / Answer
Ans:
Taco king will hire 4 workers to maximize profit .
Taco king produces 79 tacos to maximize profit.
Explanation:
The profit maximizing condition is:
MRP = Wage rate
From the table, it is clear that if the firm will hire 4 workers and produce 79 tacos, then the profit maximizing condition is satisfied, i.e., MRP = Wage rate = 120.
Workers (L) Tacos per day (Q) MPP MRP = $4*MPP 2 13 3 49 36 144 4 79 30 120 5 103 24 96 6 115 12 48Related Questions
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