Table 18-2 The Following Table Shows the Production Function for a Particular

question 274

Multiple Choice

Table 18-2
The following table shows the production function for a particular business.The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis.

-Refer to Table 18-2.Suppose this firm charges a price of $5 per unit of output and pays workers a wage equal to $160 per day.How many workers should this firm hire to maximize its profit?

• A) 2 workers
• B) 3 workers
• C) 4 workers
• D) 5 workers

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Definitions:

Unilateral Mistake

A situation where only one party to a contract is mistaken about a fundamental aspect of the contract, affecting the agreement's validity.

Original Party

The initial entities or individuals who entered into a contract or agreement.

Assignee

An assignee is a person or entity appointed to receive the rights or property under a contract or agreement from another, known as the assignor.

Assignor

The party in a contract who transfers their rights or interests in a property or agreement to another party, known as the assignee.