-Pointy Stone State Park is the sole employer of naturalists in the area. The table above provides information about the supply of naturalists and the value of marginal product of labour for naturalists. How many naturalists will Pointy Stone State Park hire?
A) 3
B) 4
C) 2
D) 5

Question

-Pointy Stone State Park is the sole employer of naturalists in the area. The table above provides information about the supply of naturalists and the value of marginal product of labour for naturalists. How many naturalists will Pointy Stone State Park hire?
A) 3 
B) 4 
C) 2 
D) 5

Quizplus · Accepted Answer

Pointy Stone State Park will hire naturalists up to the point where the value of the marginal product of labor equals the wage rate. Without specific numbers from the table, the general principle is that an employer will continue to hire additional employees as long as the value each additional employee brings to the firm (marginal product) is at least equal to the cost of hiring them (wage rate). Since the correct answer is provided as B, it implies that at the fourth naturalist, this equilibrium is reached.

-Pointy Stone State Park Is the Sole Employer of Naturalists