Exhibit 26-4

-Refer to Exhibit 26-4. How many units of labor should this firm employ?

Question

Exhibit 26-4
​
 
-Refer to Exhibit 26-4. How many units of labor should this firm employ?

Quizplus · Accepted Answer

The firm should employ the number of units of labor where the marginal product of labor (MPL) equals the wage rate, assuming the wage rate is given by the price of the product times the MPL. Without specific numbers or a graph (Exhibit 26-4 is not provided), the correct answer typically involves understanding this principle of labor employment in economics. Since I can't see Exhibit 26-4, the correct answer is based on the principle that firms maximize profit by employing labor up to the point where the value of the marginal product of labor equals the wage rate.

Exhibit 26-4 ​

Exhibit 26-4