Scenario: a Small Apple Orchard Operates in a Perfectly Competitive

question 224

Multiple Choice

Scenario: A small apple orchard operates in a perfectly competitive output market (the market for apples) and input or factor market (the market for apple pickers) . The market price of apples is $1 per pound, and the market wage for apple pickers is $50 per day. See the following table.

-Refer to the scenario above.Now suppose that apple pickers have the same productivity as they did initially,but the price of apples rises to $1.25 per pound.The profit-maximizing number of workers the orchard should hire is ________.

• A) 5
• B) 10
• C) 11
• D) 14