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21) The Upstart Company has the following production function. Number of Workers Number of Cases Produced 0 10 19 26 31 34 0 2 3 5 Ifthe company hires 4 workers, which of the following could be the real wage rate? A) 2 B) 4 C) 6 D) 8show work!!

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Answer #1
Number of workers Number of cases produced Marginal product
0 0 -
1 10 10
2 19 9
3 26 7
4 31 5
5 34 3

At optimal MP =real wage rate.

For 4th worker , MP=5

And for 5th worker ,MP=3

This implies that if the company hires 4 workers,then real wage rate should lies between 3 and 5. Therefore, the real wage rate could be 4. Hence, option(B) is correct.

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