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.
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?