Table 10-1

-Refer to Table 10-1.Suppose the output price is $3.If the wage rate is $90,what is the profit-maximising quantity of labour that the firm should hire?
A) 7 units
B) 5 units
C) 4 units
D) 3 units

Question

Table 10-1
 
-Refer to Table 10-1.Suppose the output price is $3.If the wage rate is $90,what is the profit-maximising quantity of labour that the firm should hire?
A) 7 units 
B) 5 units 
C) 4 units 
D) 3 units

Quizplus · Accepted Answer

The profit-maximising quantity of labour is 7 units because at this point, the marginal revenue product of labour (MRPL) is equal to the wage rate.

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