Answer:
He hires 8 workers
Explanation:
The total cost is $1600 for 5,000 chickens minus the fixed cost of $800, which equals $800. The total cost is total of fixed cost and variable cost as in absence of production the total variable cost is zero so from this we can conclude that total fixed cost is zero.
Then divide the total variable cost ($800) buy what Ralph pays his workers ($100), which comes to 8.
The number of workers that he hires is 8 workers
Given Information
Workers paid = $100 each
Assuming $1,600 is given as the Total cost for the 5,000 quantity for the chicken and the Fixed Cost is $800
Total cost = $1,600 out of which $800 is the fixed cost.
Variable cost = Total cost - Fixed cost
Variable cost = $1,600 - $800
Variable cost = $800
Numbers of workers hired = Variable cost / Workers pay
Numbers of workers hired = $800 / $100
Numbers of workers hired = $8
Therefore, the number of workers that Ralph hires is 8 workers
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