The Following Data Show the Total Output for a Firm

question 138

Multiple Choice

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100.
TABLE 7-4
-Refer to Table 7-4.The marginal product of labour is at its maximum when the firm changes the amount of labour hired from

• A)0 to 1 unit.
• B)1 to 2 units.
• C)2 to 3 units.
• D)3 to 4 units.
• E)4 to 5 units.