Question

If the firm sells its product at the market price of $10 per unit, how many workers should the firm employ to maximize profit if the wage rate is $55

Answer 1

Answer:

the data regarding output and the quantity of labor is missing, so I looked for a similar question and found the attached image.

if one employee is hired, total production = $80, and total cost = $55

if two employees are hired, total production = $150, and total cost = $110

if three employees are hired, total production = $210, and total cost = $165

if four employees are hired, total production = $260, and total cost = $260

hiring four employees should maximize profits since MC = MR