The following table provides information about production at the XYZ-TV Company.

How many workers will XYZ-TV Company hire if the going wage for TV production workers is $34,000?

Question

The following table provides information about production at the XYZ-TV Company.  
   
How many workers will XYZ-TV Company hire if the going wage for TV production workers is $34,000?

Quizplus · Accepted Answer

The firm will hire 1 worker. At that level, the value of marginal product is $34,000 whereas the cost is only $34,000. Note that a seconder worker would only add $33,000 of value but cost an additional $34,000.

The Following Table Provides Information About Production at the XYZ-TV