Certainly! To solve this problem, let's plot the Marginal Resource Cost (MRC) for Stephanie's business step-by-step:
1. Understand the Concept:
- The Marginal Resource Cost (MRC) is the additional cost of employing one more unit of labor (worker).
2. Identify MRC from the Table:
- According to the table provided, the MRC remains constant at \[tex]$10 per hour for each additional worker.
3. Plot the Data:
- We will plot the number of workers on the x-axis and the MRC on the y-axis.
- Since the MRC is constant and equal to \$[/tex]10 for each worker, the graph will be a horizontal line.
Here are the points to plot:
- For 1 worker: MRC = \[tex]$10
- For 2 workers: MRC = \$[/tex]10
- For 3 workers: MRC = \[tex]$10
- For 4 workers: MRC = \$[/tex]10
- For 5 workers: MRC = \[tex]$10
- For 6 workers: MRC = \$[/tex]10
- For 7 workers: MRC = \[tex]$10
4. Graph the Line:
- To plot the points:
- x-axis (Labor: 1, 2, 3, 4, 5, 6, 7)
- y-axis (MRC: 10, 10, 10, 10, 10, 10, 10)
The graph will be a horizontal line at \$[/tex]10 on the y-axis. Here is an approximate visual representation:
```
MRC (dollars per hour)
|
12 |-------------------------------
|
10 |----o----o----o----o----o----o----o-
|
8 |
|
6 |
|
4 |
|
2 |
|
|____________________________________
1 2 3 4 5 6 7
Labor (workers)
```
Each 'o' represents a plotted point for each level of labor from 1 to 7 workers, all with an MRC of \$10.
