The marginal revenue product of labor in firm X is MRPL = 35 - .23L, where...

The marginal revenue product of labor in firm X is MRPL = 35 - .23L, where L is the number of workers. If the current wage for workers in firm X's industry is $7.25 per hour, how many workers will be employed by the firm? (round to the nearest worker.)

Solutions

Expert Solution

The firm hires workers at MRPL=wage

35-0.23L=7.25

-0.23L=-35+7.25=-27.75

L=27.75/0.23

L=120.652174

=121

the firm will employ 121 workers

Rahul Sunny answered 1 year ago

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