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(Table: the Market for Power Tools, Marginal Revenue Product of Labor

Question 207

Multiple Choice

(Table: The Market for Power Tools, Marginal Revenue Product of Labor and Demand) Use Table: The Market for Power Tools, Marginal Revenue Product of Labor and Demand. In the table, the total product of labor is shown for the hourly production of power tools. Assume that the market for power tools is perfectly competitive. If the price of a power tool is $2 and the market wage rate is $20 per hour, the profit-maximizing quantity of labor is _____ workers.  Table: The Market for Power Tools,  Marginal Revenue Product of Labor and  Demand  Quantity of Labor  Total Product 0012025039041205140615071508140{ \begin{array} { l } \text { Table: The Market for Power Tools, } \\\text { Marginal Revenue Product of Labor and } \\\text { Demand }\\\end{array} } \\\begin{array} { | l | l | } \hline \text { Quantity of Labor } & \text { Total Product } \\\hline 0 & 0 \\\hline 1 & 20 \\\hline 2 & 50 \\\hline 3 & 90 \\\hline 4 & 120 \\\hline 5 & 140 \\\hline 6 & 150 \\\hline 7 & 150 \\\hline 8 & 140 \\\hline\end{array}


A) two
B) four
C) six
D) eight

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