Given the following table,how many workers should be hired to maximize profits?
$\begin{array}{|l|l|l|l|}
\hline \text { Labor } & \begin{array}{l}
\text { Marginal } \
\text { Product Labor }
\end{array} & \begin{array}{l}
\text { VMP } \
\text { L }
\end{array} & \text { Wage } \
\hline 1 & 8 & \$ 32 & \$ 100 \
\hline 2 & 32 & \$ 128 & \$ 100 \
\hline 3 & 16 & \$ 64 & \$ 100 \
\hline 4 & -1 & \$-4 & \$ 100 \
\hline 5 & -12 & \$-48 & \$ 100 \
\hline
\end{array}$
A) 1
B) 2
C) 3
D) 4

Question

Quizplus · Accepted Answer

To maximize profits, hire workers until the value of the marginal product (VMP) equals the wage. The VMP is greater than the wage for the first two workers, but for the third worker, the VMP is less than the wage. Therefore, hire 2 workers.

Given the Following Table,how Many Workers Should Be Hired to Maximize