Use the table to answer the following question.
If the market wage rate is $150 per worker, how many workers should be employed if the firm wants to maximize profit?

Question

Use the table to answer the following question. 
If the market wage rate is $150 per worker, how many workers should be employed if the firm wants to maximize profit?

Quizplus · Accepted Answer

To maximize profit, the firm should employ workers where the marginal revenue product (MRP) is equal to the wage rate (MRP=Wage rate). At $150 market wage rate, the MRP for the 5th worker is $150, which is equal to the wage rate. Therefore, the firm should employ 5 workers to maximize profit.

Use the Table to Answer the Following Question