The Table Below Shows a Competitive Firm's Short-Run Production Function $\begin{array}{cccc} \text {Units of Labor } & \text { Units of Output} \\3 &370\\4 &490\\5 &570\\6 &600\\7&620\\\end{array}$

question 62

Multiple Choice

The table below shows a competitive firm's short-run production function.Labor is the firm's only variable input,and market price for the firm's product is $2 per unit. $\begin{array}{cccc} \text {Units of Labor } & \text { Units of Output} \\3 &370\\4 &490\\5 &570\\6 &600\\7&620\\\end{array}$

If market price for the firm's product increases to $5,how many units of labor will the firm employ at a wage rate of $200?

• A)0,the firm shuts down
• B)4
• C)5
• D)6
• E)7

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Definitions:

Discrete Quantitative Variables

Variables that represent countable quantities and can take on a finite number of distinct values.

Elementary Units

The simplest, indivisible entities which a data set or a statistical analysis is concerned with.

Finite Result

An outcome or solution that is fixed and definitive, with limitations in terms of size, number, or extent.

Discrete Variable

A variable that can take on a countable number of distinct values and cannot take on every value within its range.