Table 18-6

-Refer to Table 18-6.How many workers should the firm hire?

Question

Table 18-6
 
-Refer to Table 18-6.How many workers should the firm hire?

Quizplus · Accepted Answer

The optimal number of workers a firm should hire is determined by the point where the marginal cost of hiring an additional worker equals the marginal revenue product of labor. Without the specific data from Table 18-6, the general economic principle suggests that the firm should hire up to the point where the cost of hiring an additional worker is equal to the revenue generated by that worker.

Table 18-6 -Refer to Table 18-6.How Many Workers Should the Firm Hire