Q1. You have been hired as an economic consultant by a price-taking (a perfectly competitive) firm that produces T-shirts. The firm already has a factory, so it is operating in the short-run. The price of T-shirt is $9, the hourly wage is $24, and each T-shirt requires $1 worth of material. The following table shows the relationship between the number of workers and output of T-shirts.
Note: For answering question-1 (a) and (b) students are required to show all possible calculations.
Unlock access to this and over
10,000 step-by-step explanations
Have an account? Log In