If hiring the 7th worker increases total product by 5 units and the price of each unit is $2, a. the firm should not hire the 7th worker as MRMC d. the firm should not hire the 7th worker as MR

Economics For Today
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ISBN:9781337613040
Author:Tucker
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Chapter11: Labor Markets
Section: Chapter Questions
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Use the following to answer questions 18-24:
Number of Workers
0
1
2
3
4
5
6
7
8
9
10
Total Cost
50
110
160
200
240
250
260
280
310
350
400
If hiring the 7th worker increases total product by 5 units and the price of each unit is $2,
a. the firm should not hire the 7th worker as MR<MC
b. marginal revenue equals $2
c. the firm should hire the 7th worker as MR>MC
d. the firm should not hire the 7th worker as MR<TC
Transcribed Image Text:Use the following to answer questions 18-24: Number of Workers 0 1 2 3 4 5 6 7 8 9 10 Total Cost 50 110 160 200 240 250 260 280 310 350 400 If hiring the 7th worker increases total product by 5 units and the price of each unit is $2, a. the firm should not hire the 7th worker as MR<MC b. marginal revenue equals $2 c. the firm should hire the 7th worker as MR>MC d. the firm should not hire the 7th worker as MR<TC
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