Use the data in Table: Wendy's Windows to answer the question.
If Wendy uses the Rational Rule for Employers, how many workers will she hire?
$\begin{array}{l}
\text { Table: Wendy's Windows (price }=\$ 200 \text { ) }\
\begin{array}{|l|l|}
\hline \begin{array}{c}
\text { Number of } \
\text { workers (weekly } \
\text { wage } \$ 600)
\end{array} & \begin{array}{c}
\text { Marginal product } \
\text { (weekly) }
\end{array} \
\hline 1 & 5 \
\hline 2 & 4 \
\hline 3 & 3 \
\hline 4 & 2 \
\hline
\end{array}
\end{array}$

Question

Quizplus · Accepted Answer

The Rational Rule for Employers states that an employer should hire workers up to the point where the value of the marginal product (VMP) equals the wage. The VMP is calculated as the marginal product (MP) of the worker times the price of the product. For Wendy's Windows, the price is $200. Thus, the VMP for each worker is: - 1st worker: 5 windows * $200 = $1000 - 2nd worker: 4 windows * $200 = $800 - 3rd worker: 3 windows * $200 = $600 - 4th worker: 2 windows * $200 = $400 Since Wendy pays a weekly wage of $600, she will hire workers as long as their VMP is at least $600. Therefore, Wendy will hire three workers, as the VMP of the third worker exactly matches the wage, but the VMP of the fourth worker falls below the wage.

Use the Data in Table: Wendy's Windows to Answer the Question