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a market price of $2 per dozen and can hire all the workers it needs at a wage rate of $8 per hour. The output of the Leadmill Company is a perfectly competitive pencilmanufacturing firm. Leadmill can sell all of the pencils it produces at workers at Leadmill is given in the table below. Number of Workers 0123 8677AWN0 3 4 5 6 7 Output (dozens) 0 8 SZER338 15 21 26 30 35 36 a. Using marginal analysis, state the condition for employing the profitmaximizing number of workers. b. How many workers should Leadmill hire to maximize profit? Explain how you derived that number. c. If the wage rate decreased to $6 dollars per hour, how many workers would Leadmill employ? d. If the wage rate was $6 per hour and the price of pencils decreased to $1 per dozen, how many workers would Leadmill employ?
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a To determine the profit maximizing number of workers Leadmill should compare the marginal revenue product MRP of labor with the wage rate w The MRP View the full answer
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