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Answer the Question on the Basis of the Data Contained

Question 22

Multiple Choice

Answer the question on the basis of the data contained in the following table.Assume that the firm is hiring labor in a purely competitive market.  Units of  Labor  Total  Product 00115228339448555660ProductPrice$2.202.001.801.601.401.201.10\begin{array}{ccc}\begin{array}{ccc}\begin{array}{c}\text { Units of } \\\text { Labor }\\\hline\end{array} && \begin{array}{c}\text { Total } \\\text { Product }\\\hline\end{array} \\0 & & 0 \\1 & & 15 \\2 & & 28 \\3 & & 39 \\4 & & 48 \\5 & & 55 \\6 & & 60\end{array}\begin{array}{c}Product\\Price\\\hline \$ 2.20\\ 2.00 \\ 1.80 \\ 1.60 \\1.40 \\ 1.20 \\ 1.10 \end{array}\end{array} The given data reveal that:


A) the firm is selling its product in a purely competitive market.
B) the firm is selling its product in an imperfectly competitive market.
C) there is no level of output at which this firm can operate at a profit.
D) the law of diminishing returns is not applicable to this firm.

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