Table 17-2

For the production data represented in this table, assume that labor is the only variable input.
-Refer to Table 17-2.What is the profit-maximizing quantity of labor that the firm should hire?
A)5 units
B)4 units
C)3 units
D)2 units

Question

Table 17-2
  
For the production data represented in this table, assume that labor is the only variable input.
-Refer to Table 17-2.What is the profit-maximizing quantity of labor that the firm should hire?
A)5 units 
B)4 units 
C)3 units 
D)2 units

Quizplus · Accepted Answer

The profit-maximizing quantity of labor is 5 units because at this quantity, the marginal revenue product of labor (MRPL) is equal to the marginal cost of labor (MCL).

Table 17-2 For the Production Data Represented in This Table, Assume That