Question

A firm currently employs 30 workers at a daily wage rate of $40. It calculates that the marginal cost per day of hiring an additional worker would be $102.

By how much would the daily wage rate have to be increased to attract an extra worker?

Answer 1

The theory states that workers will be hired up to the point when the marginal revenue product is equal to the wage rate. 

So, if MR = MC, then the wage of additional worker should be no more than $102.