Workers are paid 50 per unit per unit capital cost are 10


You are the manager at Glass Inc. which is a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results from the study are summarized in the attached table and are based on the 5 units of capital currently available at your plant. Workers are paid $50 per unit, per unit capital cost are $10, and your window sells for $5 each. optimize the human resource and production decisions. Do anticipate earning a profit or loss? Explain carefully.

Labor Output
0 0
1 10
2 30
3 60
4 80
5 90
6 95
7 95
8 90
9 80
10 60
11 30

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Econometrics: Workers are paid 50 per unit per unit capital cost are 10
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