How to find the profit maximizing number of employees to hire
Channel: Econ Examples Travis Klein
Date: 2021-08-31

How to calculate the number of employees to hire when given marginal product and total product, wage if the firm is a profit maximizing firm.

Two example problems used:
Given The Following Table, How Many Workers Should Be Hired To Maximize Profits? LABOR MP VMP WAGE 1 8 $32 $100 2 32 $128 $100 3 16 $64 $100 4 -1 $-4 $100 5 -12 $-48

Given the following table, how many workers should be hired to maximize profits?
LABOR MP VMP WAGE

1 8 $32 $100
2 32 $128 $100
3 16 $64 $100
4 -1 $-4 $100
5 -12 $-48 $100

Identify the number of employees a firm should hire to maximize profit. Number of Employees Total Production Marginal Product of Labor Marginal Revenue Product - 0 14 22 14 8 WN 28 32 5353 If the price of the product is $4 and the cost of each employee is $20, how many employees should the firm hire to maximize their profit?