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You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below.
1
$250
60
$150
2
$500
110
$475
3
$750
150
$725
4
$1,000
180
$925
5
$1,250
200
$1,065
6
$1,500
210
$1,195
7
$1,750
215
$1,295
(Part A) What is the marginal product of the second worker?.
(Part B) What is the marginal revenue product (MRP) of the fourth worker?
(Part C) What is the marginal cost (MC) of the first worker?
(Part D) Based on your knowledge of marginal analysis, how many workers should you hire? Explain you answer.
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