Sony produces MP3 players. The table below depicts the number of MP3 players var

Question

Sony produces MP3 players. The table below depicts the number of MP3 players various quantities of workers can produce per day Output of MP3 Players per day Quantity of Marginal Product of Labor Marginal Revenue Product of Labor Product Price 100 1,485 1,357 1,232 1,110 991 875 15 29 15 14 13 97 54 65 75 5 95 Suppose the market wage is $900 per day. How many workers should Sony hire to maximize profits? workers. (Enter a numeric response using an integer) f the market wage increases to $1300 per day, then Sony should hire workers.

Explanation / Answer

Answer
the optimum number of the worker is hired at marginal revenue product equal to the wage
wage=$900,
the firm should hire 5 workers
wage=1300
the firm should higher 2 workers

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