Micro 5.4 Resource Market, MRP and MRC: Econ Concepts in 60 Seconds- Factor Market

The video tutorial explains key economic concepts in a competitive market, focusing on how firms decide the number of workers to hire. It covers the calculation of marginal product and marginal revenue product, and how these metrics influence hiring decisions. The tutorial uses a pizza-making example to illustrate these concepts, showing that a firm should hire workers as long as the marginal revenue product exceeds the wage.

What is the significance of the wage in relation to the marginal revenue product?

Explain why the firm decided not to hire the fifth worker.