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13. You run a fried chicken restaurant in Kentucky and can hire labor at a wage of $2/hr in a competitive labor market. You don't
13. You run a fried chicken restaurant in Kentucky and can hire labor at a wage of $2/hr in a competitive labor market. You don't have any costs aside from the labor because, like Joe Exotic, you get free expired meat from a grocery store. I won't tell your customers. The chicken sells for $1.50/piece in a competitive fried chicken market. The production function is shown in the following table: L (hours) Q (pieces) 0 0 2 2 7 3 10 4 11 What is the marginal product of the 3rd hour of labor? - pieces of chicken (continued) Based on the table how many hours of labor should be hired in order to maximize profit? a. 1 b. 2 c. 3 d. 4
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