Use the labor demand data on the left and the labor supply data on the right in answering the next question.Labor Demand DataLabor Supply DataEmploymentMarginal RevenueProduct PriceEmploymentWage Rate00$30$1111431112123211393311473411543511623611The firm will maximize profits (or minimize losses) by employing
A. 5 workers.
B. 4 workers.
C. 3 workers.
D. 2 workers.
Answer: D
You might also like to view...
In order to determine the average variable cost, the firm's variable costs are divided by _______________________.
a. its fixed costs b. the quantity of output c. its average costs d. diminishing marginal costs
In order to maximize its profits, a firm that hires workers in a perfectly competitive labor market will hire workers until the:
A. extra revenue generated from hiring another worker equals the extra cost of hiring that worker. B. the marginal wage rate equals marginal product of the last worker. C. extra revenue generated from hiring another worker equals the extra profit from hiring that worker. D. the marginal product of labor begins to decline.
The sum of all of debit items in the balance of payments
A. equals "compensating" transactions. B. equals the errors and omissions. C. equals the overall balance. D. equals the sum of all credit items.
An increase in the real value of stock prices, which is independent of a change in the price level, would affect aggregate demand due to the:
A. foreign purchases effect. B. real-balances effect. C. wealth effect. D. interest-rate effect.