How many workers will the firm choose to employ

Reference no: EM13209517

Units of Labor Total Product Product Price
0 0 $2.20
1 15 $2.00
2 28 $1.80
3 39 $1.60
4 48 $1.40
5 56 $1.20
6 60 $1.10

How much is added to the firm's total revenue if the firm hires the 4th worker? What is the economic term for this number?
If the market equilibrium wage rate is $8, how many workers will the firm choose to employ? Hint: what is the marginal revenue product of labor.
What is the rule that the firm uses for making this hiring decision?

Reference no: EM13209517

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