The table below gives data on output for a firm in the short run. The firm is able to hire labor and its TPP is given. Compute the MPP and MRP for labor if the price of the good is fixed at $12 per unit. The firm must pay workers $40 a day. How many workers should this profit maximizing firm hire?
|
LABOR
|
TPP
|
|
MPP
|
MRP
|
|
1
|
4
|
|
|
|
|
2
|
9
|
|
|
|
|
3
|
15
|
|
|
|
|
4
|
21
|
|
|
|
|
5
|
26
|
|
|
|
|
6
|
30
|
|
|
|
|
7
|
33
|
|
|
|
|
8
|
35
|
|
|
|
|
9
|
36
|