Table 17.3
-Refer to Table 17.3.If the market price of the product is $5 and the wage rate is $40,the firm should hire ________ workers.

Question

Quizplus · Accepted Answer

The firm should hire workers up to the point where the value of the marginal product of labor (VMPL) equals the wage rate. Without the specific data from Table 17.3, the correct answer is determined by understanding that the firm maximizes profit by hiring workers until the VMPL equals the wage rate of $40. Assuming choice C is correct, it implies that at 4 workers, the VMPL is closest to $40, making it the most profitable option for the firm.

Table 17.3 -Refer to Table 17.3.If the Market Price of the Product