Figure 18-3
The figure shows a particular profit-maximizing, competitive firm's value-of-marginal-product (VMP) curve.
-Refer to Figure 18-3. The firm would choose to hire three workers if

Question

Figure 18-3
The figure shows a particular profit-maximizing, competitive firm's value-of-marginal-product (VMP) curve.  ​
-Refer to Figure 18-3. The firm would choose to hire three workers if

Quizplus · Accepted Answer

At a wage of $220, the firm's marginal revenue product (MRP) of the third worker is exactly $220, making it the last worker the firm would hire to maximize profit, as hiring any more workers would result in a MRP lower than the wage.

Figure 18-3 The Figure Shows a Particular Profit-Maximizing, Competitive Firm's Value-Of-Marginal-Product (VMP)