Table 18-2

-Refer to Table 18-2. The table shows the number of bracelets that can be assembled per week by various numbers of workers. If the price per bracelet in a perfectly competitive product market is $8, how many workers would the firm employ if the weekly wage rate is $800?
A)1
B)2
C)3
D)4

Question

Table 18-2
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-Refer to Table 18-2. The table shows the number of bracelets that can be assembled per week by various numbers of workers. If the price per bracelet in a perfectly competitive product market is $8, how many workers would the firm employ if the weekly wage rate is $800?
A)1
B)2
C)3
D)4

Quizplus · Accepted Answer

The firm will employ workers until the marginal revenue product (MRP) equals the wage rate. If the price per bracelet is $8, the firm will hire workers until the additional revenue from the last worker equals $800. Calculate MRP for each worker and choose the number of workers where MRP is closest to $800 without exceeding it.

Table 18-2 ​

Table 18-2