Exhibit 11-9 In Exhibit 11-9, if the wage rate is $44 and does not vary, how many workers will be hired?

Question

Exhibit 11-9  In Exhibit 11-9, if the wage rate is $44 and does not vary, how many workers will be hired?

Quizplus · Accepted Answer

At a wage rate of $44, the firm will hire workers up to the point where the marginal revenue product (MRP) equals the wage rate. From the graph, we can see that the MRP is equal to $44 for 5 workers. Hiring any additional workers would result in a MRP lower than the wage rate, so the firm will not hire them. Therefore, the firm will hire 5 workers at a wage rate of $44.

Exhibit 11-9 in Exhibit 11-9, If the Wage Rate