Using the data below, determin how many workers should be hired by this perfectly competitive firm....

Using the data below, determin how many workers should be hired by this perfectly competitive firm. Assume the marginal factor cost, or wage rate, is $55, and the marginal revenue product is in $'s:

No. of Workers	MRP
1	80
2	70
3	60
4	40

a) 1

b) 2

c) 3

d) 4

Expert Solution

option c

===

The firm hires at MRP=wage or the nearest lower wage

wage =55 then MRP=60

where

workers =3

the firm will hire 3 workers

Rahul Sunny answered 2 years ago

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