Based on the table below, how many workers will the firm employ in order to maximize profits? $$\begin{array} { c c c c }
\text { Workers } & \text { Output } & \text { Product Price } & \text { Wage Rate } \
\hline 12 & 5,000 & \$ 2 & \$ 725 \
13 & 5,450 & \$ 2 & \$ 725 \
14 & 5,875 & \$ 2 & \$ 725 \
15 & 6,275 & \$ 2 & \$ 725 \
16 & 6,650 &\$2 &\$ 725 \
17 & 7,000 & \$ 2 & \$ 725 \
18 & 7,325 & \$ 2 & \$ 725
\end{array}$$

Question

Based on the table below, how many workers will the firm employ in order to maximize profits? $$\begin{array} { c c c c } 
\text { Workers } & \text { Output } & \text { Product Price } & \text { Wage Rate } \
\hline 12 & 5,000 & \$ 2 & \$ 725 \
13 & 5,450 & \$ 2 & \$ 725 \
14 & 5,875 & \$ 2 & \$ 725 \
15 & 6,275 & \$ 2 & \$ 725 \
16 & 6,650 &\$2 &\$ 725 \
17 & 7,000 & \$ 2 & \$ 725 \
18 & 7,325 & \$ 2 & \$ 725
\end{array}$$

Quizplus · Accepted Answer

The firm will employ 16 workers to maximize profits. The marginal revenue product (MRP) equals the marginal cost (wage rate) at 16 workers, where the additional revenue from hiring one more worker equals the wage paid.

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