A firm operates in perfectly competitive product and labour markets. The table below shows the relationship between the number of workers employed per day and the firm's total daily output (Total Physical Product):
| Number of workers (LLL) | Total daily output (TPPTPPTPP, units) |
|---|---|
| 1 | 10 |
| 2 | 18 |
| 3 | 24 |
| 4 | 28 |
| 5 | 30 |
Initially, the market price of the good is £15 £15\,£15 and the daily wage rate is £90£90£90, meaning the firm maximizes profits by employing 3 workers.
If the market price of the good subsequently rises to £22.50 £22.50\,£22.50 while the daily wage rate remains unchanged at £90£90£90, how many workers should the firm employ to maximize its profits?
2 workers
3 workers
4 workers
5 workers
