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3. A profit maximizing firm which hires inputs in competitive markets will hire inputs so the the added revenue of the last unit hired (MRP) is equal to the added cost of hiring. Since this firm must pay workers $30 per hour it will keep hiring workers as long as they contribute at least $30/hour to revenue. Since chairs sell for $5 each the last worker should add 6 chairs to output giving her a MRP of $5 x 6 = $30.
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| Workers | Chairs/Hour | MP | MRP |
| 0 | 0 | 0 | 0 |
| 1 | 5 | 5 | 25 |
| 2 | 12 | 7 | 35 |
| 3 | 20 | 8 | 40 |
| 4 | 27 | 7 | 35 |
| 5 | 33 | 6 | 30 |
| 6 | 38 | 5 | 25 |
| 7 | 42 | 4 | 20 |
| 8 | 45 | 3 | 15 |
|
