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

Question

Quizplus · Accepted Answer

According to the table, the marginal product of labor (MPL) starts decreasing after the 11th worker, and the marginal cost of labor (MCL) increases after the 11th worker. Therefore, in order to maximize profits, the firm should stop hiring workers when MPL=MCL, which occurs at the 12th worker. Hiring additional workers after the 12th worker would cost more than the additional revenue they bring in, resulting in a decrease in profits. Therefore, the best choice is to employ 12 workers.

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