A Firm's Labor Input, Total Output of Labor, and Product

question 96

Multiple Choice

A firm's labor input, total output of labor, and product price schedules are given in the table. Labor is the only variable input. How many workers will the profit-maximizing firm hire if the wage rate is $0.5 per day?

• A)4
• B)5
• C)7

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Definitions:

Twin Countershaft Transmission

A twin countershaft transmission is a type of gearbox found in heavy-duty vehicles, featuring two parallel shafts that allow for more efficient torque distribution and gear ratios.

Input Shaft

The shaft that transfers power from an external source (like an engine) into a gearbox or transmission to be distributed to the machinery.

Shift Bar Housing

The manifold on top of a standard transmission that houses the shift rails, usually three, to which shift yokes are connected; the shift tower assembly mounts on top of the shift bar housing. Also known as shift rail housing.

Range Shifts

Actions or processes involving the change of gear ranges in transmissions, allowing vehicles to operate efficiently across different speeds and terrains.