Refer to the table shown. $$\begin{array}{l}
\begin{array} { | c | c | }
\hline \text { Number wf Warkers } & \text { Tatal Praduct per Huur }\
\hline 1 & 24 \
\hline 2 & 44 \
\hline 3 & 60 \
\hline 4 & 74 \
\hline 5 & 84 \
\hline 6 & 90 \
\hline 7 & 92 \
\hline
\end{array}
\end{array}$$ If the price per unit of product is $2 and the wage rate is $25, a profit-maximizing firm operating in competitive markets would hire:

Question

Refer to the table shown. $$\begin{array}{l}
\begin{array} { | c | c | } 
\hline \text { Number wf Warkers } & \text { Tatal Praduct per Huur }\
\hline 1 & 24 \
\hline 2 & 44 \
\hline 3 & 60 \
\hline 4 & 74 \
\hline 5 & 84 \
\hline 6 & 90 \
\hline 7 & 92 \
\hline
\end{array}
\end{array}$$ If the price per unit of product is $2 and the wage rate is $25, a profit-maximizing firm operating in competitive markets would hire:

Quizplus · Accepted Answer

The profit-maximizing number of workers is determined by comparing the marginal product of labor (MPL) with the wage rate, given the price per unit of product. The MPL is the increase in total product from hiring an additional worker. For each worker from 1 to 4, the MPL times the price per unit ($2) exceeds the wage rate ($25), but beyond the fourth worker, the additional revenue generated by hiring another worker is less than the wage rate. Therefore, hiring four workers maximizes profit.

Refer to the Table Shown If the Price Per Unit of Product Is $2 and c