
Table 17-3
Hotspur Incorporated, a manufacturer of microwave ovens, is a price taker in its input and output markets. The firm hires labor at a constant wage rate of $800 per week and sells microwave ovens at a constant price of $80. Table 17-3 shows the relationship between the quantity of labor it hires and the quantity of microwave ovens it produces. Assume that labor is the only variable input.
-Refer to Table 17-3.What is Hotspur's profit-maximizing quantity of labor?
A) 2 workers
B) 3 workers
C) 5 workers
D) 6 workers
Correct Answer:
Verified
Q73: The market demand curve for labor
A)is determined
Q74: Table 17-4 Q75: Table 17-3 Q76: An increase in the price of grape Q77: Suppose a competitive firm is paying a Q79: Which of the following factors will not Q80: The marginal product of labor curve is Q81: The income effect of a wage increase Q82: The labor supply for an industry would Q83: The combined effect (both income and substitution)of
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