Table 18-5 -Refer to Table 18-5.To Maximize Its Profit,how Many Workers Will

question 30

Multiple Choice

Table 18-5

-Refer to Table 18-5.To maximize its profit,how many workers will the firm hire?

• A) 2
• B) 3
• C) 4
• D) 5

---

Definitions:

Midpoint Method

A technique used in economics to calculate elasticity by averaging the percentages of change in both quantity and price.

Price Elasticity

A gauge for assessing how the demand or supply levels of an item react to price alterations.

Income Elasticity

A measure of how much the demand for a good or service changes in response to a change in income.

Inferior Good

A good for which a rise in income decreases the demand for the good.