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The owners of a local business are making a rational decision about how many workers to hire. How many workers would cause the marginal costs to exceed the marginal benefits?

2 Answers

7 votes

Answer: 10

Explanation: UsaTesprep

User Mehmet Sunkur
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3 votes

10 workers would cause the marginal to exceed the marginal benefits.

Step-by-step explanation:

  • Let us understand the term "Marginal benefits".
  • It is the additional amount that the consumer "willing to pay" for an additional goods or a service.
  • In terms of producers, the marginal benefit is termed as marginal revenue.
  • Here according to the situation given in the question as to how many workers to hire could be answered by the number 10.
  • Marginal revenue always falls below marginal cost.
  • It is the revenue that the organization receives for selling one additional unit.
User Josh Butler
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