Refer to Table 18-2. The table shows the number of bracelets that can be assembled per week by various numbers of workers. If the price per bracelet in a perfectly competitive product market is $8, how many workers would the firm employ if the weekly wage rate is $800?

A) 1
B) 2
C) 3
D) 4

Question

Connor Maggiore · Accepted Answer

Final Answer : C, Explanation :  The firm will employ workers until the marginal revenue product (MRP) equals the wage rate. If the price per bracelet is $8, the firm will hire workers until the additional revenue from the last worker equals $800. Calculate MRP for each worker and choose the number of workers where MRP is closest to $800 without exceeding it.

Refer to Table 18-2. The table shows the number of bracelets that can be assembled per week by various numbers of workers. If the price per bracelet in a perfectly competitive product market is $8, how many workers would the firm employ if the weekly wage rate is $800?

A) 1
B) 2
C) 3
D) 4

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Learning Objectives

Related questions

Refer to Table 18-2. The table shows the number of bracelets that can be assembled per week by various numbers of workers. If the price per bracelet in a perfectly competitive product market is $8, how many workers would the firm employ if the weekly wage rate is $800?A) 1B) 2C) 3D) 4

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Table 18-2. The table shows the number of bracelets that can be assembled per week by various numbers of workers. If the price per bracelet in a perfectly competitive product market is $8, how many workers would the firm employ if the weekly wage rate is $800?

A) 1
B) 2
C) 3
D) 4