Based on the table below,how many workers will the firm employ in order to maximize profits?

Question

Quizplus · Accepted Answer

To maximize profits, the firm should produce where MC = MR, which in this case is at a quantity of 16 units of output. At this level of output, the marginal cost is $5 and the marginal revenue is $11, resulting in a profit per unit of $6. Any level of production beyond 16 units would result in diminishing returns, which means that each additional worker hired would increase production costs by more than the revenues generated by selling additional units, resulting in lower profits.

Based on the Table Below,how Many Workers Will the Firm