Table 17.2
-Refer to Table 17.2.The marginal revenue product of the ________ worker is $150.

Question

Quizplus · Accepted Answer

The optimal choice of workers is where the marginal revenue product equals the wage rate. In this case, the second worker has an MRP of $150, which is exactly equal to the wage rate. Therefore, hiring only the second worker would maximize the firm's profits. Hiring any additional workers would result in a decrease in profits as their MRP is less than the wage rate.

Table 17.2 -Refer to Table 17.2.The Marginal Revenue Product of the ________