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The product price is $10 per unit and the cost per worker is $600. How many workers will the firm employ

1 Answer

4 votes

Answer:

5 workers

Step-by-step explanation:

The computation is shown below:

Workers Total Total Marginal Total Marginal

production revenue revenue($) cost cost($)

at $10 per unit at $600 per worker

1 100 1000 1000 600 600

2 190 1900 900 1200 600

3 270 2700 800 1800 600

4 340 3400 700 2400 600

5 400 4000 600 3000 600

6 450 4500 500 3600 600

7 490 4900 400 4200 600

8 520 5200 300 4800 600

As we can see at 5 workers the marginal revenue is equivalent to marginal cost so the same is to be considered

The product price is $10 per unit and the cost per worker is $600. How many workers-example-1
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