Figure 18-1 on the Graph, L Represents the Quantity of Labor and Labor

question 549

Multiple Choice

Figure 18-1
On the graph, L represents the quantity of labor and Q represents the quantity of output per week.
-Refer to Figure 18-1. Suppose the firm hires each unit of labor for $700 per week, and each unit of output sells for $9. How many workers will the firm hire to maximize its profit?

• A)2
• B)3
• C)4

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