Question
Labor Output Price (D 1 ) Price (D 2 ) 0 0 $10.00 $10.00 1 16 10.00 9.50 2 31 10.00 9.00 3 45 10.00
Labor
Output
Price (D1)
Price (D2)
0 0 $10.00 $10.00 1 16 10.00 9.50 2 31 10.00 9.00 3 45 10.00 8.50 4 58 10.00 7.50 5 69 10.00 6.50 6 78 10.00 5.50
Assume that the labor market is perfectly competitive. Supposethe firm’s product demand is given by the column labeledD1. If the wage rate is $125, the firm will achievemaximum profit by hiring _____ workers.
3
5
4
6
Labor | Output | Price (D1) | Price (D2) |
| 0 | 0 | $10.00 | $10.00 |
| 1 | 16 | 10.00 | 9.50 |
| 2 | 31 | 10.00 | 9.00 |
| 3 | 45 | 10.00 | 8.50 |
| 4 | 58 | 10.00 | 7.50 |
| 5 | 69 | 10.00 | 6.50 |
| 6 | 78 | 10.00 | 5.50 |
Assume that the labor market is perfectly competitive. Supposethe firm’s product demand is given by the column labeledD1. If the wage rate is $125, the firm will achievemaximum profit by hiring _____ workers.
3
5
4
6
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
