Firm X sells output at a price of $8 per unit and pays labor a wage of $20 per hour. The marginal product of labor is given by: MPL = 12 – .1L. To maximize profit, the firm should utilize hours of labor. a) 75 b) 80 c) 85 06 (p e) 95

Firm X sells output at a price of $8 per unit and pays labor a wage of $20 per hour. The marginal product of labor is given by: MPL = 12 – .1L. To maximize profit, the firm should utilize hours of labor. a) 75 b) 80 c) 85 06 (p e) 95

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 3PA

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Question

Pick the correct answer and explain in details

Firm X sells output at a price of $8
marginal product of labor is given by: MPL = 12 – .1L. To maximize profit, the firm should
utilize
per
unit and
рays
labor
a wage
of $20 per hour. The
hours of labor.
a) 75
b) 80
c) 85
d) 90
e) 95

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