The Following Data Show the Total Output for a Firm

question 134

Multiple Choice

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50.
TABLE 7-3
-Refer to Table 7-3.The marginal product of labour is at its maximum when the firm changes the amount of labour hired from

• A)0 to 1 unit.
• B)1 to 2 units.
• C)2 to 3 units.
• D)3 to 4 units.
• E)4 to 5 units.