The following graph represents Ronnie's demand for labor to help him make cookies in his cookie shop. Assume this is a perfectly competitive market.
Suppose the current wage rate is $40 per day.
Part 1. Using the graph, draw Ronnie's marginal resource cost (MRC) curve for the first 5 workers.
Instructions: Use the tool provided "MRC" to plot the line point by point, starting from 0 worker up to 5 workers (6 points total).
Part 2. If the wage is $40 per day, how many workers will Ronnie want to hire? Multiple choice.
a. 3 workers
b. 2 workers
c. 1 worker
d. 4 workers