Refer to the following:
Columns 1 and 2 make up a portion of a monopolist's production function for a single variable input, labor. Columns 2 and 3 represent the demand function facing the monopolist over this range of output:
$$\begin{array} { c c c }
(1)& \text { (2) } & \text { (1) } \
\hline \text { Undsar Labor } & \text { Unds of Oupud } & \text { Price } \
\hline 3 & 370 & \$ 10 \
4 & 490 & 9 \
5 & 570 & 8 \
6 & 600 & 7 \
7 & 670 & 6
\end{array}$$
-If the monopolist faces a fixed wage rate of $300, how many units of labor will the firm employ?

Question

Refer to the following:
Columns 1 and 2 make up a portion of a monopolist's production function for a single variable input, labor. Columns 2 and 3 represent the demand function facing the monopolist over this range of output:
 $$\begin{array} { c c c } 
(1)& \text { (2) } & \text { (1) } \
\hline \text { Undsar Labor } & \text { Unds of Oupud } & \text { Price } \
\hline 3 & 370 & \$ 10 \
4 & 490 & 9 \
5 & 570 & 8 \
6 & 600 & 7 \
7 & 670 & 6
\end{array}$$
-If the monopolist faces a fixed wage rate of $300, how many units of labor will the firm employ?

Quizplus · Accepted Answer

The monopolist will employ 4 units of labor because at that level of employment, the marginal revenue product of labor ($9) is equal to the wage rate ($300).

Refer to the Following: Columns 1 and 2 Make Up

Refer to the Following:
Columns 1 and 2 Make Up