Graph 18-1 This Graph Represents the Value of Marginal Product

question 212

Multiple Choice

Graph 18-1
This graph represents the value of marginal product for a firm that sells its product in a competitive market. Use the graph to answer the following question(s) .
-Refer to Graph 18-1. To maximise profit, a firm would hire labour at a level:

• A) greater than Q^*
• B) equal to Q^*
• C) less than Q^*
• D) there is not enough information; the supply curve is needed to make this decision

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