Assume that a restaurant is hiring labor in an amount such that the MRC of the last worker is $16 and her MRP is $12.On the basis of this information,we can say that:

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Since the MRP of the last worker is less than the MRC, it implies that the additional worker will contribute less to the revenue generated by the restaurant than what it will cost (MRC) to hire that worker. This suggests that the restaurant is currently over-laboring and should reduce the number of workers to increase profits.

Assume That a Restaurant Is Hiring Labor in an Amount