You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below.
No. of workers Total Labor Cost Output Total Revenue
1 $150 100 $170
2 300 108 550
3 450 114 1150
4 600 119 1470
5 750 123 1600
6 900 125 1700
7 1050 126 1750
What is the marginal product of the second worker?
What is the marginal revenue product of the fourth worker?
What is the marginal cost of the fifth worker?
Based on your knowledge of marginal analysis, how many workers should you hire?