Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5 and the wage rate is $37.50 per day, how many workers should Winnie employ to maximize his profit?
A) 2
B) 3
C) 4
D) 5
C
You might also like to view...
What is the economic variable that guides the invisible hand?
What will be an ideal response?
Which of the following groups tend to have lower unemployment?
a. younger workers b. middle-aged workers c. women d. those with less education
In order to explain the changing gap in earnings between skilled and unskilled workers in recent years, economists have proposed two hypotheses. One hypothesis emphasizes
a. compensating differentials. b. the increased recognition that a larger stock of human capital usually leads to higher earnings. c. technological progress. d. the decreasing importance of international trade.
A dairy company, Farley Farm, has total costs of $10,000 and total variable costs of $3,000. Farley Farm's total fixed costs are
A. $0. B. $7,000. C. $13,000. D. indeterminate because the firm?s output level is not known.