Question: We R ' Write has collected some cost information for you regarding the production of pens. In the table below, you are provided with the
We R Write has collected some cost information for you regarding the production of pens. In the table below, you are
provided with the total output of pens per day corresponding to different levels of labor. You are also provided with
the price of labor per day, the total fixed costs per day, and the price per pen.
Currently, We R Write is using employees on the production line. Is this level producing maximum
profits? How did you determine this answer?
What is the level of profit made when workers are used per day to produce pens? How did you
determine this?
Should We R Write continue to produce or temporarily shut down in the short run, if pens are
produced per day? Why, or why not?
At what level of output and workers used are profits maximized? Identify two ways you can find this
maximum profit using the information in the table below.
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