Use the table below to answer the following questions.
Table 18.2.1

-Refer to Table 18.2.1. If the firm can sell all the output it wants for the price of $4 a unit, what is the profit-maximizing number of workers if the wage rate is $12?

Question

Use the table below to answer the following questions.
Table 18.2.1
 
-Refer to Table 18.2.1. If the firm can sell all the output it wants for the price of $4 a unit, what is the profit-maximizing number of workers if the wage rate is $12?

Quizplus · Accepted Answer

The profit-maximizing number of workers is found where marginal revenue equals marginal cost. In this case, marginal revenue is $4 and marginal cost is $12. Therefore, the profit-maximizing number of workers is 8.

Use the Table Below to Answer the Following Questions