The table shows a firm's total hourly production for varying numbers of workers. Suppose the firm sells its product in a perfectly competitive market at a price of $5. Output MP MRP Number of Workers 0 1 2 3 4 5 0 27 51 72 90 105 27 24 21 18 15 $135 $120 $105 $90 $75 Suppose the labour market is perfectly competitive and the equilibrium wage is $105. The firm should hire 3 workers to maximize profits. (Enter your response as a whole number.) Now suppose the equilibrium wage increases to $120. The firm should hire 2 workers to maximize profits. (Enter your response as a whole number.) If the equilibrium wage is $120 and the firm hires 3 workers instead of 2 workers, the firm has given up $ 15 in profits. (Enter your response rounded to the nearest whole number.)
The table shows a firm's total hourly production for varying numbers of workers. Suppose the firm sells its product in a perfectly competitive market at a price of $5. Output MP MRP Number of Workers 0 1 2 3 4 5 0 27 51 72 90 105 27 24 21 18 15 $135 $120 $105 $90 $75 Suppose the labour market is perfectly competitive and the equilibrium wage is $105. The firm should hire 3 workers to maximize profits. (Enter your response as a whole number.) Now suppose the equilibrium wage increases to $120. The firm should hire 2 workers to maximize profits. (Enter your response as a whole number.) If the equilibrium wage is $120 and the firm hires 3 workers instead of 2 workers, the firm has given up $ 15 in profits. (Enter your response rounded to the nearest whole number.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The table shows a firm's total hourly production for varying numbers of workers. Suppose the firm sells its product in a perfectly competitive market at a price of $5.
Output
MRP
Number of
Workers
ܘ ܝ ܚ ܚ ܟ ܗ
1
2
3
4
5
0
27
51
72
90
105
MP
722656
24
21
18
15
$135
$120
$105
$90
$75
Suppose the labour market is perfectly competitive and the equilibrium wage is $105. The firm should hire 3 workers to maximize profits. (Enter your response as a
whole number.)
Now suppose the equilibrium wage increases to $120. The firm should hire 2 workers to maximize profits. (Enter your response as a whole number.)
If the equilibrium wage is $120 and the firm hires 3 workers instead of 2 workers, the firm has given up $ 15 in profits. (Enter your response rounded to the nearest
whole number.)
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