The Marginal Product of Labour (Measured in Units of Output)for

question 81

Multiple Choice

The marginal product of labour (measured in units of output) for New Age Nirvana is given by MPN = A(200 - N) where A measures productivity and N is the number of labour hours used in production.Assume that the price of output is $3 per unit and that A = 2.0.What will be the demand for labour if the nominal wage is $30?

• A)170
• B)185
• C)190
• D)195

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