Figure 1 Labour (Number of Workers) -Refer to Figure 1

question 49

Multiple Choice

Figure 1 Labour (number of workers)

$\begin{array}{cccc} \text { Labour (number of } & \text { Output } & \text { Marginal Product } & \text { Value of MPL } \\ \text { workers) } & \text {per hour } & \text { of Labour (MPL) } \\\hline0 & 0 \\ 1 & 5 \\ 2 & 9 \\ 3 & 12 \\ 4 & 14 \\ 5 & 15\end{array}$
-Refer to Figure 1. If this profit-maximizing firm sells its output in a competitive market for €3 per unit and hires labour in a competitive market for €8/hour, then this firm should hire

• A) one worker.
• B) two workers.
• C) three workers.
• D) four workers.
• E) five workers.

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Definitions:

Ordinary Prudent Person

A legal standard used to determine the level of care that a typical, reasonable person would exercise in a given situation, for purposes of establishing negligence or compliance.

Contractual Duties

Obligations that a party is bound to fulfill as per the terms of a contract.

Professional

An individual who offers specialized services or advice based on formal training or expertise.

Common Law Fraud

A type of fraud that involves making false representations of fact intentionally or recklessly for the purpose of inducing another to act to their detriment.