Here's how much a firm produces for every level of employment, from 1 worker to 10:...

Transcribed Image Text:

Here's how much a firm produces for every level of employment, from 1 worker to 10: Output, loaves of bread per hour 50 65 79 92 104 115 125 134 142 149 Employment (number of workers) 1 2 3 4 5 6 7 8 9 10 Bread is sold for $2 per loaf, and the wage the firm must pay its workers is $17 per hour. How many workers will the firm employ? Give the number and explain. (1) Here's how much a firm produces for every level of employment, from 1 worker to 10: Output, loaves of bread per hour 50 65 79 92 104 115 125 134 142 149 Employment (number of workers) 1 2 3 4 5 6 7 8 9 10 Bread is sold for $2 per loaf, and the wage the firm must pay its workers is $17 per hour. How many workers will the firm employ? Give the number and explain. (1)

Answer rating: 100% (QA)

To determine the optimal number of workers the firm should employ we need to consider the marginal product of labor MPL and the real wage rate The mar... View the full answer