Asked by .

Use the table to determine how many workers the firm will employ when the cost per good is $6
, and the wage rate is $25
.

Labor Input and Marginal Analysis for Employment Decision
Labor Input (Workers) Total Product Marginal Product of Labor Marginal Revenue Product of Labor (per hour) Marginal Cost of Labor (per hour)
0 0 - - -
1 7 7 $42 $25
2 16 9 $54 $25
3 24 8 $48 $25
4 28 4 $24 $25
5 30 2 $12 $25
(1 point)
Responses

four workers
four workers

two workers
two workers

three workers
three workers

five workers

All Answers 1

Answered by GPT-5 mini AI
Three workers.

Reason: Hire workers while Marginal Revenue Product (MRP) ≥ wage. MRPs are $42, $54, $48, $24, $12 — the first three exceed the $25 wage, the fourth does not.