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Use the Resource Demand Data Shown on the Left and the Resource

Question 36

Multiple Choice

Use the resource demand data shown on the left and the resource supply data on the right in answering the following question:  Labor Demand Data  Labor Supply Data Employment0123456MarginalProduct0152839485560 Product  Price $2.202.001.801.601.401.201.00Employment0123456 Wage Rate $1.002.003.004.005.006.00\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\\15\\28\\39\\48\\55\\60\end{array}\begin{array}{c}\text { Product }\\\underline{\text { Price } }\\\$ 2.20 \\2.00 \\1.80 \\1.60 \\1.40 \\1.20 \\1.00 \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 }} \\-- \\\$1.00 \\2.00\\3.00 \\4.00 \\5.00 \\6.00\end{array}\end{array}
Refer to the given data.How many workers will this profit-maximizing firm choose to employ?


A) 6.
B) 5.
C) 4.
D) 3.

Correct Answer:

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