How many workers does kaiser hire

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Question: Kaiser's Ice Cream Parlour hires workers to produce milk shakes. The market for milk shakes is perfectly competitive, and the price of a milk shake is $4. The labour market is competitive, and the wage rate is $40 a day. The table shows the workers' total product schedule.

Number of            Quantity produced
 workers             (milk shakes per day)

1                                    7

2                                   21

3                                   33

4                                   43

5                                   51

6                                   55

Kaiser's installs a new machine for making milk shakes that increases the productivity of workers by 50 percent. If the price of a milk shake remains at $4 and the wage rises to $48 a day, how many workers does Kaiser's hire?

Reference no: EM131614536

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