on 20 Table: Excellence Publishing et ered Number of Books Edited Per Year Number of Workers...

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Answer 1

Answer #1

ANSWER:

Marginal cost = $47,000

marginal revenue of 5th worker = (19000 - 16000) * 50 = 3000 * 50 = $150,000

marginal revenue of 6th worker = (21200 - 19000) * 50 = 3200 * 50 = $160,000

marginal revenue of 7th worker = (22800 - 21200) * 50 = 1600 * 50 = $80,000

marginal revenue of 8th worker = (23700 - 22800) * 50 = 900 * 50 = $45,000

marginal revenue of 9th worker = (24200 - 23700) * 50 = 500 * 50 = $25,000

since the marginal cost > marginal revenue at the 8th worker , so therefore the company will hire upto 7 people.

Therefore the correct answer is option c.

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Answer 2

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