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Questions Are Based on the Data in the Following

Question 12

Multiple Choice

Questions are based on the data in the following table. Assume that the labor market is perfectly competitive.




 Labor  Output 00115229342454565675 Price (D1) $10.0010.0010.0010.0010.0010.0010.00 Price (D2) $10.009.509.008.507.506.505.50\begin{array}{cc}\begin{array}{cc}\text { Labor } & \text { Output } \\\hline0& 0 \\1 & 15 \\2 & 29 \\3 & 42 \\4 & 54 \\5 & 65 \\6 & 75\end{array}\begin{array}{c}\text { Price }\left(D_{1}\right) \\\hline\$ 10.00 \\10.00 \\10.00 \\10.00 \\10.00 \\10.00 \\10.00 \\\end{array}\begin{array}{c}\text { Price }\left(\mathrm{D}_{2}\right) \\\hline \$ 10.00 \\9.50 \\9.00 \\8.50 \\7.50 \\6.50 \\5.50\end{array}\end{array}
-Suppose the firm's product demand is given by the column labeled D1.If the wage rate is $120,the firm will achieve maximum profit by hiring _____ workers.


A) 3
B) 4
C) 5
D) 6

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