Suppose that in a competitive output market, firms hire labor from a competitive labor market. The firm has a fixed number of machines and can produce the following quantities (Q) associated with the number of workers (L) in a given hour. L: 0, 1, 2, 3, 4, 5 Q: 0, 14, 26, 36, 44, 50 The market price of the good this firm sells is $2.50. If the firm pays a wage of W=$19.00 per hour, then how many units of labor should this firm hire to maximize profit? Show your work. a) 1 b) 2 c) 3 d) 4 e) 5

Suppose that in a competitive output market, firms hire labor from a competitive labor market. The firm has a fixed number of machines and can produce the following quantities (Q) associated with the number of workers (L) in a given hour. L: 0, 1, 2, 3, 4, 5 Q: 0, 14, 26, 36, 44, 50 The market price of the good this firm sells is $2.50. If the firm pays a wage of W=$19.00 per hour, then how many units of labor should this firm hire to maximize profit? Show your work. a) 1 b) 2 c) 3 d) 4 e) 5

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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