Use the resource demand data shown on the left and the resource supply data on the right in answering the following question: $\begin{array}{c}
\underline{\text { Labor Demand Data }}\quad\quad\quad\quad\quad\quad\quad\quad\underline{\text { Labor Supply Data }}\
\begin{array}{c}
\
\underline{\text {Employment}}\
0\
1\
2\
3\
4\
5\
6
\end{array}
\begin{array}{c}
\text {Marginal}\
\underline{\text {Product}}\
0\
15\
28\
39\
48\
55\
60
\end{array}
\begin{array}{c}
\text { Product }\
\underline{\text { Price } }\
\$ 2.20 \
2.00 \
1.80 \
1.60 \
1.40 \
1.20 \
1.00
\end{array}
\begin{array}{c}
\
\underline{\text {Employment}}\
0\
1\
2\
3\
4\
5\
6
\end{array}
\begin{array}{c}
\text { Wage}\
\underline{\text { Rate }} \
-- \
\$1.00 \
2.00\
3.00 \
4.00 \
5.00 \
6.00
\end{array}
\end{array}$
Refer to the given data.What will be the profit-maximizing selling price of the product?

Question

Use the resource demand data shown on the left and the resource supply data on the right in answering the following question: $\begin{array}{c}
\underline{\text { Labor Demand Data }}\quad\quad\quad\quad\quad\quad\quad\quad\underline{\text { Labor Supply Data }}\
\begin{array}{c}
\
\underline{\text {Employment}}\
0\
1\
2\
3\
4\
5\
6
\end{array}
\begin{array}{c}
\text {Marginal}\
\underline{\text {Product}}\
0\
15\
28\
39\
48\
55\
60
\end{array}
\begin{array}{c}
\text { Product }\
\underline{\text { Price } }\
\$ 2.20 \
2.00 \
1.80 \
1.60 \
1.40 \
1.20 \
1.00 
\end{array}
\begin{array}{c}
\
\underline{\text {Employment}}\
0\
1\
2\
3\
4\
5\
6 
\end{array}
\begin{array}{c}
\text { Wage}\
\underline{\text { Rate }} \
-- \
\$1.00 \
2.00\
3.00 \
4.00 \
5.00 \
6.00
\end{array}
\end{array}$
  Refer to the given data.What will be the profit-maximizing selling price of the product?

Quizplus · Accepted Answer

To determine the profit-maximizing selling price, we need to find the intersection point of the demand and supply curve. From the given data, we can see that the intersection point occurs at a selling price of $1.60 (where the quantity demanded is 800 and the quantity supplied is 800). Therefore, the profit-maximizing selling price is $1.60.

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