Answer to Question #175687 in Macroeconomics for Rebecca Ohene Danso

Question

You are a manager at Glass Inc. 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 summarized below, and are based on the eight units of capital currently 

available at your plant. Workers are paid $60 per unit, per unit capital costs are $20, and 

your encapsulated windows sells for $12 each. Given this information, optimize your 

human resource and production decisions. Do you anticipate earning a profit or loss? 

Explain carefully.

Labor 

Output 

1

10

2

30

3

60

4

80

5

90

6

95

7

95

8

90

9

80

10

60

11

30

Answer 1

we calculate in excel the necessary costs and revenues, profits, losses

Yellow is the profit zone, and red is the maximum profit zone for a given volume of production. Therefore, it is necessary to produce products in volumes according to the red selection, this is the most optimal result