Table: Mr. B's Restaurant $$\begin{array} { | r | r | }
\hline \begin{array} { c }
\text { Number of } \
\text { cooks }
\end{array} & \begin{array} { c }
\text { Increase in revenue } \
\text { from hiring an } \
\text { additional cook } \
\text { (per hour) }
\end{array} \
\hline 1 & \$ 120 \
\hline 2 & 80 \
\hline 3 & 35 \
\hline 4 & 15 \
\hline
\end{array}$$ The second column in this table shows the firm's ______. At a wage of $28 an hour, Mr. B should hire ______ cooks.

Question

Table: Mr. B's Restaurant $$\begin{array} { | r | r | } 
\hline \begin{array} { c } 
\text { Number of } \
\text { cooks }
\end{array} & \begin{array} { c } 
\text { Increase in revenue } \
\text { from hiring an } \
\text { additional cook } \
\text { (per hour) }
\end{array} \
\hline 1 & \$ 120 \
\hline 2 & 80 \
\hline 3 & 35 \
\hline 4 & 15 \
\hline
\end{array}$$ The second column in this table shows the firm's ______. At a wage of $28 an hour, Mr. B should hire ______ cooks.

Quizplus · Accepted Answer

The second column in the table shows the firm's marginal product of labor, which is the increase in output (revenue) from hiring an additional unit of labor (a cook). At a wage of $28 an hour, Mr. B should hire 3 cooks because the marginal product of labor for the third cook is $35, which is greater than the wage.

Table: Mr B's Restaurant The Second Column in This Table Shows the Firm's ______