You have been hired to manage a small manufacturing facilty which has cost and production data given in the table below.
workers total labor cost output revenue
1 $200 50 $350
2 400 140 675
3 600 220 1120
4 800 270 1570
5 1000 300 1865
6 1200 315 2070
7 1400 320 2170
(a) What is the marginal product of the second worker?
(b) What is the marginal revenue product of the forth worker?
(c) What is the marginal cost of the first worker?
(d) Based on your knowledge of marginal analysis, how many workers should you hire? Explain your answer.