Question

The owners of a local business are making a rational decision about how many workers to hire. How many workers would cause the marginal costs to exceed the marginal benefits?

Answer 1

10 workers would cause the marginal  to exceed the marginal benefits.

Explanation:

• Let us understand the term "Marginal benefits".
• It is the additional amount that the consumer "willing to pay" for an additional goods or a service.
• In terms of producers, the marginal benefit is termed as marginal revenue.
• Here according to the situation given in the question as to how many workers to hire could be answered by the number 10.
• Marginal revenue always falls below marginal cost.
• It is the revenue that the organization receives for selling one additional unit.

Answer 2

Answer: 10

Explanation: UsaTesprep