Suppose a firm has a fixed amount of capital and hourly output that increases with labor as follows: Labor 1, output 10; labor 2, output 17; labor 3, output 24; labor 4, output 29; labor 5, output 33; labor 6, output 36. If the wage is $4, and the competitive price of the output is $1, what is the profit maximizing quantity of labor per hour?

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     1 laborer
      6 laborers
      5 laborers
      3 laborers
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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5 laborers
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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