We R' Write is really worried about their production line for pens. The company is concerned that they are employing more workers on the production line than necessary. We R' Write has provided you with the production information for pens in the table below that corresponds to different numbers of workers on the production line. Describe
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We R' Write is really worried about their production line for pens. The company is concerned that they are employing more workers on the production line than necessary. We R' Write has provided you with the production information for pens in the table below that corresponds to different numbers of workers on the production line.
- Describe where the law of diminishing marginal productivity begins for We R' Write.
- We R' Write currently uses 75 workers on the production line per day. Given the calculations in the table, is this number optimal? Why, or why not?
- If you could make a suggestion regarding the optimal number of workers We R' Write should use on the production line, what would it be? Why?
Number of
Workers per
Day
Pens
Produced per
Day
Average
Product
Marginal
Product
Price per Pen
Total
Value
Product
Average
Value
Product
Marginal
Value
Product
Price of
Worker per
Day
0
0
---
---
$3.50
$0.00
---
---
$560
15
1,000
66.67
67
$3.50
$52.50
$233.33
$233.33
$560
30
2,700
90.00
113
$3.50
$105.00
$315.00
$396.67
$560
45
5,100
113.33
160
$3.50
$157.50
$396.67
$560.00
$560
60
7,900
131.67
187
$3.50
$210.00
$460.83
$653.33
$560
75
12,000
160.00
273
$3.50
$262.50
$560.00
$956.67
$560
90
15,700
174.44
247
$3.50
$315.00
$610.56
$863.33
$560
105
18,100
172.38
160
$3.50
$367.50
$603.33
$560.00
$560
120
20,300
167.17
147
$3.50
$420.00
$592.08
$513.33
$560
135
21,900
162.22
107
$3.50
$472.50
$567.78
$373.33
$560
150
22,300
148.67
27
$3.50
$525.00
$520.33
$93.33
$560
165
22,300
135.15
0
$3.50
$577.50
$473.03
$0.00
$560
180
21,500
119.44
-53
$3.50
$630.00
$418.06
-$186.67
$560
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