Micro Unit 5, Question 8- Hiring Workers

The video tutorial explains how to calculate the marginal product, which is the additional output from each additional worker. It then introduces the concept of marginal revenue product, which is the additional revenue generated by each worker. The tutorial guides on making hiring decisions based on these calculations, considering the marginal resource cost. Finally, it demonstrates how to calculate profit by subtracting total costs from total revenue, including fixed and variable costs, to determine if hiring workers is profitable.

What new insight or understanding did you gain from this video?