Use the following to answer questions:
-(Table: Value of the Marginal Product of Labor and Demand) In the figure Value of the Marginal Product of Labor and Demand, the total product of labor is shown for the hourly production of power cords. Assume that the market for power cords is perfectly competitive. If the price of a power cord is $4 and the market wage rate is $80 per hour, the profit-maximizing quantity of labor is _____ worker(s).
A) one
B) three
C) five
D) seven

Question

Use the following to answer questions: 
-(Table: Value of the Marginal Product of Labor and Demand) In the figure Value of the Marginal Product of Labor and Demand, the total product of labor is shown for the hourly production of power cords. Assume that the market for power cords is perfectly competitive. If the price of a power cord is $4 and the market wage rate is $80 per hour, the profit-maximizing quantity of labor is _____ worker(s).
A) one 
B) three 
C) five 
D) seven

Quizplus · Accepted Answer

The profit-maximizing quantity of labor is three workers because at this point, the value of the marginal product of labor is equal to the market wage rate.

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