ose that in a competitive output market, firms hire labor from a competitive labor market (so that the profit maximization conditions for hiring labor are as we discussed in class). 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 time period. L Q 0 0 1 12 2 20 3 26 4 30 5 32 The market price of the good this firm sells is $5. If the firm pays a wage of w = $19.90 per time period, then how many units of labor should this firm hire to maximize profit? Group of answer choices a) 1 b) 3 c) 4 d) 2
Suppose that in a competitive output market, firms hire labor from a competitive labor market (so that the profit maximization conditions for hiring labor are as we discussed in class). 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 time period.
L Q
0 0
1 12
2 20
3 26
4 30
5 32
The market price of the good this firm sells is $5. If the firm pays a wage of w = $19.90 per time period, then how many units of labor should this firm hire to maximize profit?
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