Use the Resource Demand Data Shown on the Left and the Resource

question 128

Multiple Choice

Use the resource demand data shown on the left and the resource supply data on the right in answering the following question: $\begin{array}{c}\underline{\text { Labor Demand Data }}\quad\quad\quad\quad\quad\quad\quad\quad\underline{\text { Labor Supply Data }}\\\begin{array}{c}\\\underline{\text {Employment}}\\0\\1\\2\\3\\4\\5\\6\end{array}\begin{array}{c}\text {Marginal}\\\underline{\text {Product}}\\0\\15\\28\\39\\48\\55\\60\end{array}\begin{array}{c}\text { Product }\\\underline{\text { Price } }\\\$ 2.20 \\2.00 \\1.80 \\1.60 \\1.40 \\1.20 \\1.00 \end{array}\begin{array}{c}\\\underline{\text {Employment}}\\0\\1\\2\\3\\4\\5\\6 \end{array}\begin{array}{c}\text { Wage}\\\underline{\text { Rate }} \\-- \\\$1.00 \\2.00\\3.00 \\4.00 \\5.00 \\6.00\end{array}\end{array}$
Refer to the given data.How many units of output will this profit-maximizing firm produce?

• A) 39.
• B) 48.
• C) 55.
• D) 60.

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Definitions:

Coefficient

In algebraic expressions, a constant or fixed number that multiplies the variable, placed before it.

First-order Polynomial

A mathematical expression of the form ax + b, where a and b are constants and x is a variable.

Second-order Polynomial

A polynomial of degree two, which can represent a parabolic trajectory or trend in data analysis.

Intercept Term

The intercept term in a regression model is the value of the dependent variable when all independent variables are equal to zero.