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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.
Workers Total Labor Cost Output Total Revenue
1 $100 50 $150
2 $200 175 $275
3 $300 275 $355
4 $400 355 $425
5 $500 425 $485
6 $600 485 $535
7 $700 525 $575
(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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