QUESTION 15Answer this question based on the information in the table:If hiring the 6th worker increases total product by 7 units and the price of each unit is $2, which of the following is true?Number of WorkersTotal Cost05011102160320042405250626072808310935010400 The firm should not hire the 6th worker as MR<MC. Marginal revenue equals $2. The firm should hire the 6th worker as MR>MC. The firm should not hire the 6th worker as MR<TC.

The profit-maximizing firm produces output such that its marginal revenue is equal to marginal cost.…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 15

Answer this question based on the information in the table:
If hiring the 6th worker increases total product by 7 units and the price of each unit is $2, which of the following is true?

Number of Workers	Total Cost
0	50
1	110
2	160
3	200
4	240
5	250
6	260
7	280
8	310
9	350
10	400

		The firm should not hire the 6th worker as MR<MC.
		Marginal revenue equals $2.
		The firm should hire the 6th worker as MR>MC.
		The firm should not hire the 6th worker as MR<TC.

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