You have been hired to manage a small manufacturing facility which has cost and production data given in the table below. No. of workers Total Labor Cost Output Total Revenue 1 $550 100 $170 2 1100 108 350 3 1650 114 800 4 2200 119 1270 5 2750 123 1600 6 3300 125 1700 7 3850 126 1750
What is the marginal product of the third worker?
What is the marginal revenue product of the second worker?
What is the marginal cost of the fourth worker?
Based on your knowledge of marginal analysis, how many workers should you hire? Explain you answer.