N | Q | MP | P | MRP |
0 | 0 | 0 | 10 | 0 |
1 | 15 | 15 | 10 | 150 |
2 | 28 | 13 | 10 | 130 |
3 | 39 | 11 | 10 | 110 |
4 | 49 | 10 | 10 | 100 |
5 | 57 | 8 | 10 | 80 |
6 | 63 | 6 | 10 | 60 |
7 | 67 | 4 | 10 | 40 |
8 | 69 | 2 | 10 | 20 |
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Suppose this table gives the MRP for workers for some firm. Using these data we can determine how many workers should be hired. Suppose that it costs $125 per day to hire a worker. In this case the firm should hire 2 workers because a 3rd would only add $110 in revenue per day.
If workers could be hired at a cost of $65 per day then 5 should be hired. The 5th worker adds $80 to revenue and so should be hired but the 6th only adds $60 and so would not be hired at a cost of $65.
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