Table 18-12
The table displays data for a small, competitive, profit-maximizing firm that produces and sells envelopes. The time frame is one week.
-Refer to Table 18-12. Suppose the firm sells each box of envelopes that it produces for $7.50. How many workers should the firm hire?
A)2
B)3
C)4

Question

Table 18-12
The table displays data for a small, competitive, profit-maximizing firm that produces and sells envelopes. The time frame is one week. 
-Refer to Table 18-12. Suppose the firm sells each box of envelopes that it produces for $7.50. How many workers should the firm hire?
A)2 
B)3 
C)4

Quizplus · Accepted Answer

The firm should hire workers up to the point where the marginal revenue product (MRP) of labor equals the wage rate. If each box sells for $7.50, calculate the MRP for each additional worker and compare it to the wage rate to determine the optimal number of workers to hire.

Table 18-12 The Table Displays Data for a Small, Competitive, Profit-Maximizing Firm