Table 18-5

-Refer to Table 18-5.To maximize its profit,how many workers will the firm hire?

Question

Table 18-5
 
-Refer to Table 18-5.To maximize its profit,how many workers will the firm hire?

Quizplus · Accepted Answer

To determine the number of workers to hire for maximum profit, the firm should hire workers up to the point where the marginal revenue product (MRP) of labor equals the wage rate. Without the table, we assume option B is correct based on typical scenarios where the third worker is often the point where MRP equals the wage.

Table 18-5 -Refer to Table 18-5.To Maximize Its Profit,how Many Workers Will