Figure 18-3 The Figure Below Shows the Production Function for a Particular

question 71

Multiple Choice

Figure 18-3
The figure below shows the production function for a particular firm.
-Refer to Figure 18-3.Suppose the firm pays a wage equal to $160 per unit of labor and sells its output at $10 per unit.How many units of labor should the firm hire to maximize profit?

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

---

Definitions:

Profitable New Markets

Emerging or untapped segments of the economy where businesses can enter and establish themselves to generate significant profit.

Existing Equipment

Machinery or tools that are currently owned or in use by an organization or individual.

Knowledge

Information, understanding, or skill that one gets from experience or education; awareness or familiarity gained by experience of a fact or situation.

Competitively Superior Fit

A strategic alignment where a company's products or services match customer needs better than competitors, providing a competitive advantage.