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Management decisions
You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below.
Total TotalWorkers Labor Cost Output Revenue1 $300 50 $3502 600 140 6753 900 220 11204 1200 270 15705 1500 300 18656 1800 315 20707 2100 320 2170
(a.) What is the marginal product of the second worker?
(b.) What is the marginal revenue product of the fourth worker?
(c.) What is the marginal cost of the first worker?
(d.) Based on your knowledge of marginal analysis, how many workers should you hire?
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