(Table: Employment and Output in the Buckwheat Market) Use Table: Employment and Output in the Buckwheat Market. In the table, if the price of a bushel of buckwheat is $5, and the price of labor (the wage) is $40, then the profit-maximizing quantity of labor is:
?
$$\begin{array}{l}
\text { Table: Employment and Output in the Buckwheat Market }\
\begin{array} { | l | l | l | }
\hline \begin{array} { l }
\text { Quantity of Labor } \
\text { (workers) }
\end{array} & \begin{array} { l }
\text { Quantity of } \
\text { Buckwheat }
\end{array} & \begin{array} { l }
\text { Marginal Product of } \
\text { Labor }
\end{array} \
\hline 0 & 0 & 0 \
\hline 1 & 19 & 19 \
\hline 2 & 36 & 17 \
\hline 3 & 51 & 15 \
\hline 4 & 64 & 13 \
\hline 5 & 75 & 11 \
\hline 6 & 84 & 9 \
\hline 7 & 91 & 7 \
\hline 8 & 96 & 5 \
\hline
\end{array}
\end{array}$$

Question

(Table: Employment and Output in the Buckwheat Market) Use Table: Employment and Output in the Buckwheat Market. In the table, if the price of a bushel of buckwheat is $5, and the price of labor (the wage) is $40, then the profit-maximizing quantity of labor is:
?
 $$\begin{array}{l}
\text { Table: Employment and Output in the Buckwheat Market }\
\begin{array} { | l | l | l | } 
\hline \begin{array} { l } 
\text { Quantity of Labor } \
\text { (workers) }
\end{array} & \begin{array} { l } 
\text { Quantity of } \
\text { Buckwheat }
\end{array} & \begin{array} { l } 
\text { Marginal Product of } \
\text { Labor }
\end{array} \
\hline 0 & 0 & 0 \
\hline 1 & 19 & 19 \
\hline 2 & 36 & 17 \
\hline 3 & 51 & 15 \
\hline 4 & 64 & 13 \
\hline 5 & 75 & 11 \
\hline 6 & 84 & 9 \
\hline 7 & 91 & 7 \
\hline 8 & 96 & 5 \
\hline
\end{array}
\end{array}$$

Quizplus · Accepted Answer

To find the profit-maximizing quantity of labor, we need to determine where the value of the marginal product of labor (VMPL) equals the wage. The VMPL is calculated by multiplying the marginal product of labor (MPL) by the price of buckwheat. For the first worker, VMPL = 19 bushels * $5/bushel = $95, which is greater than the wage of $40. This calculation is repeated for each additional worker until the VMPL is less than or equal to the wage. For the sixth worker, VMPL = 9 bushels * $5/bushel = $45, which is just above the wage, making the fifth worker the last one where VMPL exceeds the wage. Therefore, the profit-maximizing quantity of labor is 5 workers (option C).