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Use the Labor Demand Data on the Left and the Labor

Question 40

Multiple Choice

Use the labor demand data on the left and the labor supply data on the right in answering the following question:  Labor Demand Data  Labor Supply Data Employment0123456MarginalProduct014129742 Product  Price $3333333Employment0123456 Wage Rate $11111111111111\begin{array}{c}\underline{\text { Labor Demand Data }}\quad\quad\quad\quad\quad\quad\quad\quad\underline{\text { Labor Supply Data }}\\\begin{array}{c}\\\underline{\text {Employment}}\\0\\1\\2\\3\\4\\5\\6\end{array}\begin{array}{c}\text {Marginal}\\\underline{\text {Product}}\\0\\14\\12\\9\\7\\4\\2\end{array}\begin{array}{c}\text { Product }\\\underline{\text { Price } }\\\$ 3 \\3 \\3 \\3 \\3 \\3 \\3 \end{array}\begin{array}{c}\\\underline{\text {Employment}}\\0\\1\\2\\3\\4\\5\\6 \end{array}\begin{array}{c}\text { Wage}\\\underline{\text { Rate }} \\ \$ 11 \\11 \\11 \\11 \\11 \\11 \\11\end{array}\end{array}
Refer to the given data.The firm will maximize profits (or minimize losses) by employing:


A) 5 workers.
B) 4 workers.
C) 3 workers.
D) 2 workers.

Correct Answer:

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