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

question 279

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 sells its output for $12 per unit, and it pays each of its workers $700 per week. How many workers will the firm hire to maximize its profit?

• A)2
• B)3
• C)4

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Definitions:

Guarantee

A formal pledge to pay another's debt or to perform an obligation if the person who is supposed to pay or perform fails to do so.

Fulfill

To achieve or complete a duty, requirement, or condition.

Futures Contract

A contractual arrangement to purchase or sell a specific asset or financial instrument at a fixed price on a future date.

Contract Size

The deliverable quantity of commodities or financial instruments underlying futures and options contracts that is specified by the contract.