The following questions refer to the diagram below, which sh…
Questions
The fоllоwing questiоns refer to the diаgrаm below, which shows the short-run production function of а perfectly competitive firm that produces potatoes using one variable input, labor. Table: Short-run Production function of a Perfectly Competitive Firm Number of Workers Potatoes Harvested (pounds per hour) 0 0 1 3 2 7 3 10 4 12 5 13 6 12 If the firm can sell as many potatoes as it wants for $2 per pound and has to pay each worker $5 per hour, how many workers should the firm employ to maximize profits?