-In the table above, if the wage rate is $8.00 per hour, the profit-maximizing number of workers is

Question

Quizplus · Accepted Answer

The profit-maximizing number of workers is determined by comparing the marginal revenue product (MRP) of labor to the wage rate. The firm should hire workers up to the point where MRP equals the wage rate. If the MRP of the fourth worker is equal to or greater than $8.00 and the MRP of the fifth worker is less than $8.00, then 4 workers is the profit-maximizing number.

-In the Table Above, If the Wage Rate Is $8