Table 10-1

-Refer to Table 10-1.Suppose the output price is $3.If the firm represented in the table is maximising its profit by hiring six workers,what is the wage rate?
A) $120
B) $65
C) $40
D) There is insufficient information to answer the question.

Question

Table 10-1
 
-Refer to Table 10-1.Suppose the output price is $3.If the firm represented in the table is maximising its profit by hiring six workers,what is the wage rate?
A) $120 
B) $65 
C) $40 
D) There is insufficient information to answer the question.

Quizplus · Accepted Answer

The marginal revenue product of the sixth worker is $3, which is equal to the wage rate of $120.

Table 10-1 -Refer to Table 10-1.Suppose the Output Price Is $3.If the Price