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If the MPP of an additional unit of labor is 4 units per hour, product price is constant at $9 per unit, and the wage rate is $35 per hour, then:

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jepessoa

Answer:

The additional worker should be hired.

Explanation:

we need to calculate the marginal revenue product and than see if it is higher or lower than the marginal cost of hiring the extra worker.

MRP = MPP x price per unit sold = 4 units per hour  x $9 per unit = $36 per hour

Marginal cost = $35 per hour

since the MRP ($36) is higher than the MC ($35), then the additional worker should be hired.

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