The Labor Market - End of Chapter Problem an Learning You have recently opened your own internet website design Marginal Product business. You charge your clients $500 per project and are Number of Website (completed projects per considering hiring additional workers to assist you in Designers month) expanding your business. I 10 The current market wage for website designers is $2,800 per 2 9 month; assume this is the only cost you incur. You are trying 3 8 to decide how many workers to hire. To help make your 4 decision, you have determined how much additional output each worker will provide your business. 5 6 6 a. Use this information, shown in the accompanying table, to calculate the marginal revenue product, total output, total revenue, total cost, and profits for the second worker and the fifth worker. Number of Marginal Total Total Total Website Revenue Profits Output Revenue Cost Designers Product $5.000 10 $5,000 $2.800 $2.200 2 3 $4.000 27 $13,500 58.400 $5,100 4 $3.500 34 $17,000 $1 1,200 $5,800 5 6 $2.500 45 $22,500 $16,800 $5,700 b. Based on the Rational Rule for Employers, you should hire workers each month