The owners of a local business are making a rational decision about how many workers to hire. How many workers would cause the marginal costs to exceed the marginal benefits?

Question

Business

Johnathan Salazar

6 March, 12:44

The owners of a local business are making a rational decision about how many workers to hire. How many workers would cause the marginal costs to exceed the marginal benefits?

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Answers (2)

Know the Answer?

Kathy Carpenter · Answer 1

Kathy Carpenter 6 March, 13:36

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Answer: 10

Explanation: UsaTesprep

Cornelius Gross · Answer 2

10 workers would cause the marginal to exceed the marginal benefits.

Explanation:

Let us understand the term "Marginal benefits". It is the additional amount that the consumer "willing to pay" for an additional goods or a service. In terms of producers, the marginal benefit is termed as marginal revenue. Here according to the situation given in the question as to how many workers to hire could be answered by the number 10. Marginal revenue always falls below marginal cost. It is the revenue that the organization receives for selling one additional unit.