A. Nana Adjoa owns a photocopy shop at science. She started operating this business with 5 photocopiers and no employee. For the first month she was unable to produce any photocopy sheet because she had no employee. In the second month, she was able to produce 30,000 photocopy sheets because she had employed one worker. Due to this, she kept on employing an additional worker every month till the seventh month. In the third, fourth, fifth, sixth and seventh months, she was able to produce 50000, 64500, 74000, 80000 and 84000 photocopy sheets respectively. Through all these months, she did not increase the number of photocopiers even though their price of a photocopier remained at GH¢1500. The employees were hired on an as-needed basis in the labour market at GH¢3,500 each. Given that there are a lot of photocopy shops at science, the photocopy market is highly competitive and therefore the market price for one photocopy sheet is GH¢ 0,25. Based on the production data Is she producing in the long run or the short run? Explain Construct a table and determine the month in which she maximized profit How many workers are hired in that month?
A. Nana Adjoa owns a photocopy shop at science. She started operating this business with 5 photocopiers and no employee. For the first month she was unable to produce any photocopy sheet because she had no employee. In the second month, she was able to produce 30,000 photocopy sheets because she had employed one worker. Due to this, she kept on employing an additional worker every month till the seventh month. In the third, fourth, fifth, sixth and seventh months, she was able to produce 50000, 64500, 74000, 80000 and 84000 photocopy sheets respectively. Through all these months, she did not increase the number of photocopiers even though their price of a photocopier remained at GH¢1500. The employees were hired on an as-needed basis in the labour market at GH¢3,500 each. Given that there are a lot of photocopy shops at science, the photocopy market is highly competitive and therefore the market price for one photocopy sheet is GH¢ 0,25. Based on the production data
Is she producing in the long run or the short run? Explain
Construct a table and determine the month in which she maximized profit
How many workers are hired in that month?
Step by step
Solved in 2 steps
