If the firm is to hire 6 workers at $30 per hour the price of chairs must low enough so that it doesn't pay to hire a 7th worker and it must be high enough that the firm doesn't have to lay off the 6th worker. The 6th worker has a MP of 5 so the least that chairs can sell for is $6. If they sold for any less, the 6th worker's MRP would be below $30 and she wouldn't be hired. Now the 7th worker has a MP of 4 which means that the price must be below $7.50. At a price of $7.50 the MRP of the 7th worker would be $30 and she would be hired.

   In the table to the right we've added a column labeled PR which gives the Price Range for chairs which would cause the profit maximizing firme to hire the number of workers in the leftmost column. The firm would never hire just 1 or 2 workers since MP is rising. We don't know the upper price for the 8th worker without knowing the MP of the 9th.

N ChairsMPPR
0 00-
1 55-
2 127-
3 208$3.75-$4.28
4 277$4.28-$5
5 336$5-$6
6 385$6-$7.50
7 424$7.50-$10
8 453$10.00-?

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