New Year's Countdown Day 9: Ninth Worker

Brilliant Problem Writing is a firm that sells a consumer product called problems. Each problem it produces sells on the market for $5, regardless of quantity produced.

Suppose that Brilliant Problem Writing is looking to hire more workers over the short run in order to boost production and profits. Each worker that the firm hires is paid an hourly wage of $11, regardless of the number of workers. Currently, the firm has eight workers working eight hours a day, and the daily production quantity is 64 problems. If the firm were to hire an additional worker while retaining the eight hour workday, the daily production quantity will increase to 81 problems.

Should Brilliant Problem Writing hire the ninth worker?

Details and Assumptions:

  • Assume that all the problems Brilliant Problem Writing produces will be sold at the market price.
  • Assume that only the quantity of workers affects production quantities.

This problem is part of the set New Year's Countdown 2017.
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