Table 17-1

-Refer to Table 17-1.Suppose the output price is $3.If the wage rate is $90, what is the profit-maximizing quantity of labor that the firm should hire?
A)7 units
B)5 units
C)4 units
D)3 units

Question

Table 17-1
 
-Refer to Table 17-1.Suppose the output price is $3.If the wage rate is $90, what is the profit-maximizing quantity of labor that the firm should hire?
A)7 units 
B)5 units 
C)4 units 
D)3 units

Quizplus · Accepted Answer

The profit-maximizing quantity of labor is 7 units because at this quantity, the marginal revenue product of labor (MRPL) is equal to the wage rate.

Table 17-1 -Refer to Table 17-1.Suppose the Output Price Is $3.If the Price