In the Short Run,a Competitive Firm Has a Marginal Product

question 48

Multiple Choice

In the short run,a competitive firm has a marginal product of labor,MPL = 8L^-0.5.The output price is $16 per unit and the wage is $2 per hour.At the profit-maximizing level,how many units of labor are hired by the firm?

• A) L = 4
• B) L = 6
• C) L = 12
• D) L = 8

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