A Union Faces a Labor Demand Curve Given by MRP_L

question 17

Multiple Choice

A union faces a labor demand curve given by MRP_L = 100 - 5L. If the union wishes to maximize the total wages of its membership, ____ members will be employed.

• A) 20
• B) 10
• C) 8
• D) 6

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Definitions:

Unit Value

The worth assigned to a single unit of an item, used to calculate cost, quantity, or other statistical measures.

Fraction

A mathematical expression representing a part of a whole, displayed as a numerator over a denominator.

Percentage

A numerical value representing a part of 100, signaled by a fraction or ratio.

Subtract

To take away a number or amount from another, leaving a difference.