Answer to Question #173386 in Microeconomics for Varenya Sagar

Question

A employer employees 7 people and pays them 6 dollars per hour. Product is sold at 3 dollars. To maximize profit what will be the marginal productivity of last worker he employs. Also find marginal productivity of labour and total output

Answer 1

$$7\times6=42$$

$$\frac {42}{3}=14$$

To maximize profit 3 will be the marginal productivity of last worker he employs.