A local manufacturing plant employs 100 workers at a wage of $20 per hour. To meet increased demand, the plant manager needs to hire 50 more workers, bringing the total workforce to 150. An internal study of the local labor market provides the following data on the number of qualified individuals willing to work at different hourly wages:
- At $20/hour: 120 people are willing to work.
- At $22/hour: 160 people are willing to work.
- At $24/hour: 200 people are willing to work.
Assuming the plant must pay all its workers the same wage, what is the minimum hourly wage the manager must offer to attract enough candidates to reach the new staffing goal of 150 workers?
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A Firm's Expansion Challenge
A local manufacturing plant employs 100 workers at a wage of $20 per hour. To meet increased demand, the plant manager needs to hire 50 more workers, bringing the total workforce to 150. An internal study of the local labor market provides the following data on the number of qualified individuals willing to work at different hourly wages:
- At $20/hour: 120 people are willing to work.
- At $22/hour: 160 people are willing to work.
- At $24/hour: 200 people are willing to work.
Assuming the plant must pay all its workers the same wage, what is the minimum hourly wage the manager must offer to attract enough candidates to reach the new staffing goal of 150 workers?
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