The firm should hire two workers because the second worker is the one for whom MRP ($1,200) is greater than the hourly wage ($700). If the firm hired the third worker for $700, he or she would add only $600 in value, which would take away from the firm's profit.

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The Answer of The firm should hire two workers because the second worker is the one for whom MRP ($1,200) is greater than the hourly wage ($700). If the firm hired the third worker for $700, he or she would add only $600 in value, which would take away from the firm's profit.

The Firm Should Hire Two Workers Because the Second Worker