Leisure Times, Inc., employs skilled workers and capital to install hot tubs. The capital includes the tools and equipment workers use to construct and Install the tubs. The installation services are sold in a competitive market for $1,200 per hot tub. Leisure Times is able to hire workers for $3,700 per monthincluding the cost of wages, fringe benefits, and employment taxesThe increase in the number of hot tubs installed as additional workers are hired is indicated in the following table.If Leisure Times is able to hire workers for $3,700 per month, it should hire___workers to maximize its profit.Suppose the wages of skilled workers fall to $2,000 per month. At this new wage , the firm should hire___workers to maximize its profit Suppose that the price of hot tub installation services decreases to $800 per hot tub Now complete the final column of the previous table by computing the marginal revenue product of labor at this new price At this new installation price of $800 and a wage rate of $2,000 per worker per month, Leisure Times should employ___workers.

itical Analysis Questions (Ch 12) A-2 Complete the third and fourth columns of the table by computing the marginal product as the number of employed workers changes and the marginal revenue product for each unit of labor when the competitive price for a hot tub is $1,200. Marginal Revenue Product Marginal Revenue Product Number of Workers Number of Hot Tubs Marginal (Hot Tub Installation Price = ( Hot Tub Installation Price Employed Installed Product $1,200) = $800) 5 Cp N 12 S 18 S 23 27 30 bange CA EA 32 S 33 9 $ 34