To determine how many workers the firm will employ when the cost per good is $6 and the wage rate is $25, we need to compare the Marginal Revenue Product of Labor (MRP) to the wage rate.
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Calculate the price of the good (P) to find the MRP: \[ \text{MRP} = \text{Marginal Product of Labor} \times \text{Price} \] Given that the price of the good is $6.
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For each worker, we calculate the MRP using the provided marginal product:
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For 1 worker:
- Marginal Product = 7
- MRP = 7 * 6 = $42
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For 2 workers:
- Marginal Product = 9
- MRP = 9 * 6 = $54
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For 3 workers:
- Marginal Product = 8
- MRP = 8 * 6 = $48
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For 4 workers:
- Marginal Product = 4
- MRP = 4 * 6 = $24
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For 5 workers:
- Marginal Product = 2
- MRP = 2 * 6 = $12
- Now we compare each MRP to the wage rate of $25:
- For 1 worker: MRP = $42 (greater than $25, hire)
- For 2 workers: MRP = $54 (greater than $25, hire)
- For 3 workers: MRP = $48 (greater than $25, hire)
- For 4 workers: MRP = $24 (less than $25, do not hire)
- For 5 workers: MRP = $12 (less than $25, do not hire)
From our analysis, the firm will employ 3 workers because it is the last worker where the MRP ($48) is still greater than the wage rate ($25).
Thus, the correct response is: three workers.