Table 17.2
-Refer to Table 17.2.If the wage per day is $100,this T-shirt manufacturer will be maximizing profits if he hires ________ employees.

Question

Quizplus · Accepted Answer

The manufacturer will be maximizing profits when the marginal revenue product (MRP) equals the marginal resource cost (MRC). From the table, we can see that the MRP of the fourth worker is $100, which is equal to the wage per day. Therefore, the manufacturer will be maximizing profits by hiring four workers. Hiring any additional workers would result in a diminishing MRP, which would lead to lower profits.

Table 17.2 -Refer to Table 17.2.If the Wage Per Day Is $100,this