You have recently opened your own website design business. You charge your clie...
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You have recently opened your own website design business. You charge your clients a price of $300 per project and are considering hiring additional workers to assist you in expanding your business.
The table provides data on your marginal product
for each additional website designer you hire.
The market wage for website designers is $2,000/month. Assume wages are the only cost you incur.
Number of website designers
|
Marginal product (per month)
|
1
|
10
|
2
|
9
|
3
|
8
|
4
|
7
|
5
|
6
|
6
|
5
|
1. How many workers should you hire?
2. What is the maximum profit you can earn? Note: Please do not put symbols ($ or , ) in your numerical response.
$
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