Use the following to answer questions: Table: Sunshine Flower Vase Co. $$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Number of Workers } \
\text { Daily }
\end{array} & \text { Total Revenue (\$) } \
\hline 3 & 1,350 \
\hline 4 & 1,580 \
\hline 5 & 1,760 \
\hline 6 & 1,885 \
\hline 7 & 1,965 \
\hline 8 & 2,015 \
\hline
\end{array}$$
-(Table: Sunshine Flower Vase Co.) Refer to the table. If the market wage for each worker is $100 per day, how many workers will the company hire?

Question

Use the following to answer questions: Table: Sunshine Flower Vase Co. $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Number of Workers } \
\text { Daily }
\end{array} & \text { Total Revenue (\$) } \
\hline 3 & 1,350 \
\hline 4 & 1,580 \
\hline 5 & 1,760 \
\hline 6 & 1,885 \
\hline 7 & 1,965 \
\hline 8 & 2,015 \
\hline
\end{array}$$
-(Table: Sunshine Flower Vase Co.) Refer to the table. If the market wage for each worker is $100 per day, how many workers will the company hire?

Quizplus · Accepted Answer

The company will hire workers until the marginal revenue product (MRP) equals the wage. The MRP is the change in total revenue from hiring one more worker. The MRP for the 6th worker is $125 (1885 - 1760), which is greater than the wage of $100, but the MRP for the 7th worker is $80 (1965 - 1885), which is less than the wage. Therefore, the company will hire 6 workers.

Use the Following to Answer Questions: Table: Sunshine Flower Vase