(Table) According to the Table, If the Profit-Maximizing Firm Currently

question 114

Multiple Choice

(Table) According to the table, if the profit-maximizing firm currently employs five workers, it
$\begin{array}{c}\text { Competitive Labor Market }\\\begin{array}{|c|c|c|c|c|c|}\hline L & Q & M P P & \boldsymbol{P} & \boldsymbol{M M P} & \boldsymbol{W} \\\hline 0 & 0 & 0 & 8 & 0 & 80 \\\hline 1 & 5 & 5 & 8 & 40 & 80 \\\hline 2 & 11 & 6 & 8 & 48 & 80 \\\hline 3 & 18 & 7 & 8 & 56 & 80 \\\hline 4 & \mathrm{~A} & 9 & 8 & 72 & 80 \\\hline 5 & 38 & \mathrm{~B} & 8 & 88 & 80 \\\hline 6 & 50 & 12 & 8 & \mathrm{C} & 80 \\\hline 7 & 61 & 11 & 8 & 88 & 80 \\\hline 8 & 71 & 10 & 8 & 80 & 80 \\\hline 9 & 80 & 9 & 8 & 72 & 80 \\\hline 10 & 85 & 5 & 8 & 40 & 80 \\\hline\end{array}\end{array}$

• A) should hire more workers to maximize profit.
• B) is currently maximizing profit.
• C) should reduce its workforce to maximize profit.
• D) is experiencing economies of scale.

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Definitions:

Frozen Orange Juice

A product made by reducing freshly squeezed orange juice to a frozen concentrate, which can be reconstituted with water for consumption.

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