Use the data in Table: Larry's Lawn Mowing to answer the question.
If Larry uses the Rational Rule for Employers, how many workers will he hire?
$$\begin{array}{l}
\text { Table: Larry's Lawn Mowing (price - \$30) }\
\begin{array} { | l | l | l | }
\hline \begin{array} { c }
\text { Number of workers } \
\text { (weekly wage \$540) }
\end{array} & \begin{array} { c }
\text { Marginal product } \
\text { (weekly) }
\end{array} & \begin{array} { c }
\text { Marginal revenue } \
\text { product }
\end{array} \
\hline 1 & 24 & \$ 720 \
\hline 2 & 18 & \$ 540 \
\hline 3 & 14 & \$ 420 \
\hline 4 & 10 & \$ 300 \
\hline
\end{array}
\end{array}$$

Question

Use the data in Table: Larry's Lawn Mowing to answer the question.
If Larry uses the Rational Rule for Employers, how many workers will he hire?
$$\begin{array}{l}
\text { Table: Larry's Lawn Mowing (price - \$30) }\
\begin{array} { | l | l | l | } 
\hline \begin{array} { c } 
\text { Number of workers } \
\text { (weekly wage \$540) }
\end{array} & \begin{array} { c } 
\text { Marginal product } \
\text { (weekly) }
\end{array} & \begin{array} { c } 
\text { Marginal revenue } \
\text { product }
\end{array} \
\hline 1 & 24 & \$ 720 \
\hline 2 & 18 & \$ 540 \
\hline 3 & 14 & \$ 420 \
\hline 4 & 10 & \$ 300 \
\hline
\end{array}
\end{array}$$

Quizplus · Accepted Answer

The Rational Rule for Employers states that a firm should hire workers up to the point where the marginal revenue product (MRP) of the last worker hired is equal to the wage rate. In this case, Larry should hire workers as long as their MRP is at least $540, which is the weekly wage. According to the table, the MRP equals the weekly wage for the second worker, making two workers the optimal number to hire.

Use the Data in Table: Larry's Lawn Mowing to Answer