The following table shows output per hour produced by the different units of labor.Table 14.1
The marginal revenue product of a resource is equal to the product of the marginal product of an input and marginal revenue.
-According to Table 14.1, if the wage rate is $9 per hour, how many workers should this firm hire?
A)1
B)5
C)4
D)2

Question

The following table shows output per hour produced by the different units of labor.Table 14.1
The marginal revenue product of a resource is equal to the product of the marginal product of an input and marginal revenue. 
-According to Table 14.1, if the wage rate is $9 per hour, how many workers should this firm hire?
A)1 
B)5 
C)4 
D)2

Quizplus · Accepted Answer

The firm should hire 3 workers because at $9 per hour, the marginal revenue product of the third worker is equal to or greater than the wage rate, maximizing profit.

The Following Table Shows Output Per Hour Produced by the Different