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    Marginal Revenue Product: How many workers to hire?

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    Complete the following table for the firm below which is selling its product in a perfectly competitive market and hiring labor in a perfectly competitive labor market. State how many workers the firm will hire at various wages. Explain.

    TP = Total Product
    MP = Marginal Product
    MRP = Marginal Revenue Product

    Workers TP MP Price MRP
    1 12 ______ $10 ______
    2 22 ______ 10 ______
    3 30 ______ 10 ______
    4 36 ______ 10 ______
    5 40 ______ 10 ______
    6 42 ______ 10 ______

    a) How many workers will the firm hire at a wage of:
    $20 _______
    $30 _______
    $40 _______
    b) Explain.

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    https://brainmass.com/economics/microeconomics/marginal-revenue-product-how-many-workers-to-hire-475236

    Solution Preview

    a) See the attached file for the table.
    $20: 6 workers
    $30: 5 workers
    $40: 5 workers

    b)
    MRP is the ...

    Solution Summary

    This solution gives detailed calculations showing how a firm uses Marginal Revenue Product to decide how many workers to hire at a given wage.

    $2.19

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