Answer
The firm will hire two workers at 27.95 because the MRP of the first worker is valued at 34 and the MRP 28, both of these MRPs are higher than the wage of 27.95. The firm will hire 4 workers at the value of 19.95 because the workers 1-4 have an MPR exceeding the value of 19.95. The fifth worker's MRP is 14 therefore they will not be hired.
Work Step by Step
This questions asks you to think about the diminishing returns with additional workers. The firm computes the value per worker to determine how much to hire.
