$5.00 MBA 502
You decide to quit your current job to start a company dedicated to making furniture. You can hire workers for $50,000 per year (full cost including taxes and other payroll expenses) and sell each piece of furniture for $500.
The number of pieces of furniture you can make per year depends on the number of workers you hire. Below is a table that shows that relationship.
a. Construct a table showing the average and marginal product of labor and marginal revenue product of labor.
b. How many workers will you hire? Explain your answer.