This question is incomplete, the complete question is;
Quinn and Courtney manage a factory in the toy air- plane industry, which is perfectly competitive in both the product market and the factor market. They have compiled the following per-day data on worker productivity
Number of workers 0 1 2 3 4 5 6
Marginal product -- 6 5 4 3 2 1
The price of toy airplanes is $100, the wage per worker is $200, and the rent per machine is $400.
Assume the firm always produces the profit- maximizing quantity of airplanes using the cost- minimizing combination of inputs. If the marginal product of capital is 4, how many workers do Quinn and Courtney hire?
Answer: Quinn and Courtney should hire Five ( 5 ) Workers
Explanation:
Given data;
Number of workers 0 1 2 3 4 5 6
Marginal product -- 6 5 4 3 2 1
price of toy P = $100
Wage of worker W = $200
Rent per machine r = $400
Now we know that a profit maximizing organization hire workers till the region or point where their marginal revenue product of labor equals the wages they pay.
so MRPL = Wage
Marginal product labor MPL × price = wage
we substitute
MPL × $100 = $200
MPL = $200 / $100
MPL = 2
So Marginal product labor is 2
Now if we check the table provided in the question;
we will find that a marginal product of 2 corresponds to 5 number of workers.
Therefore Quinn and Courtney should hire Five ( 5 ) Workers
