Advice for a firm Youve been hired as an economic consultant

Advice for a firm. You\'ve been hired as an economic consultant by a price taking firm that produces scarves. The firm already has a factory so it is operating in the short run. the price of the scarves is $9, the cost per worker is $24, and each scarf $1 worth of material. The following table shows a relationship between the number of workers and the output scarves.

Solution

Hi, Since the table is missing in the question, we can atleast give a hint as how to solve the question.

For a price taking firm, the profit maximization condition would be where the price becomes equal to the marginal cost of producing a good, ie.

P = MC

The firm will hire that much no. of workers where the cost of production is minimum or profit is maximum.