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Economics p3 post ur doubts here..:)

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upload_2014-6-4_9-56-28-png.44764

please explain this. thank you. answer is B. i think.
 
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yeah it's B. can you explain?
3 worker earns firm revenue of 3 x 16 x 1 = $48
2 workers earns revenue = 2 x 18 x 1 = $36

now when wage is 10$ 3 workers cost 30$ (profit = $18)
2 workers cost $20 (profit = $16)

so he would hire 3 workers.. if wage rises to $14
3 workers cost $42 (profit $6)
2 Workers cost $28 (profit $8)

and hence will hire 2 workers
 
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