Table 18-8 The Following Table Shows the Production Function for a Particular

question 317

Multiple Choice

Table 18-8
The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis.

-Refer to Table 18-8.Suppose this firm charges a price of $5 per unit of output and pays workers a wage equal to $160 per day.How many workers should this firm hire to maximize its profit?

• A) 2 workers
• B) 3 workers
• C) 4 workers
• D) 5 workers

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