Firm X Sells Output at a Price of $8 Per

question 37

Multiple Choice

Firm X sells output at a price of $8 per unit and pays labor [L] a wage of $20 per hour.The marginal product of labor is given by: MPL = 7 - 0.1L.To maximize profit,the firm should utilize _____ hours of labor.

• A)75
• B)80
• C)85
• D)90
• E)95