Use the data in Table: Pat's Pedicures to answer the question.
If Pat uses the Rational Rule for Employers, how many nail technicians will she hire?
$$\begin{array}{l}
\text { Table: Pat's Pedicures (price } = \$ 25 \text { ) }\
\begin{array} { | l | l | l | }
\hline \begin{array} { c }
\text { Number of nail } \
\text { technicians (weekly } \
\text { wage \$450) }
\end{array} & \begin{array} { c }
\text { Marginal product } \
\text { (weekly) }
\end{array} & \begin{array} { c }
\text { Marginal revenue } \
\text { product }
\end{array} \
\hline 1 & 30 & \$ 750 \
\hline 2 & 24 & \$ 600 \
\hline 3 & 18 & \$ 450 \
\hline 4 & 14 & \$ 350 \
\hline
\end{array}
\end{array}$$

Question

Use the data in Table: Pat's Pedicures to answer the question.
If Pat uses the Rational Rule for Employers, how many nail technicians will she hire?
$$\begin{array}{l}
\text { Table: Pat's Pedicures (price } = \$ 25 \text { ) }\
\begin{array} { | l | l | l | } 
\hline \begin{array} { c } 
\text { Number of nail } \
\text { technicians (weekly } \
\text { wage \$450) }
\end{array} & \begin{array} { c } 
\text { Marginal product } \
\text { (weekly) }
\end{array} & \begin{array} { c } 
\text { Marginal revenue } \
\text { product }
\end{array} \
\hline 1 & 30 & \$ 750 \
\hline 2 & 24 & \$ 600 \
\hline 3 & 18 & \$ 450 \
\hline 4 & 14 & \$ 350 \
\hline
\end{array}
\end{array}$$

Quizplus · Accepted Answer

The Rational Rule for Employers states that employers will hire additional workers up to the point where the marginal revenue product (MRP) equals the wage. In this case, Pat will hire nail technicians as long as their MRP is at least $450 (the weekly wage). According to the table, Pat will hire three technicians because the MRP for the third technician is exactly $450, matching the wage.

Use the Data in Table: Pat's Pedicures to Answer the Question