Table 12.3,which is data for the firm Skipper the Shoe Maker.
Table 12.3

-Use Table 12.3 to answer this question.If labour can be hired for $28 an hour,how many hours should the firm hire?

Question

Table 12.3,which is data for the firm Skipper the Shoe Maker.
Table 12.3
 
-Use Table 12.3 to answer this question.If labour can be hired for $28 an hour,how many hours should the firm hire?

Quizplus · Accepted Answer

In Table 12.3, the marginal product of labour (MPL) is highest at 5 units of labour. This means that for every extra hour of labour hired after 5, the additional output produced decreases. Therefore, the firm should hire 5 hours of labour to maximize their production efficiency.

Table 123,which Is Data for the Firm Skipper the Shoe Maker