The Following Table Shows the Number of Bread Loaves That

question 9

Multiple Choice

The following table shows the number of bread loaves that can be produced per hour at various levels of labor use.The bakery is a perfectly competitive firm.
Table 16-2
$$\begin{array} { | c | c | } \hline \text { Labor } & \text { Total output } \\\hline 1 & 5 \\\hline 2 & 16 \\\hline 3 & 30 \\\hline 4 & 40 \\\hline 5 & 45 \\\hline 6 & 48 \\\hline 7 & 49 \\\hline\end{array}$$
-Refer to Table 16-2.If the price of bread is $2 per loaf and the wage rate is $20 per hour,how many workers will the profit maximizing firm hire?

• A)3
• B)4
• C)5
• D)6

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Definitions:

Net Operating Income

A company's income after operating expenses have been subtracted but before interest and taxes have been deducted.

Total Sales

The total revenue a company generates from selling its goods or services within a specific period.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Minimum Required Rate

The lowest rate of return or discount rate that investors are willing to accept before investing in a project or financial asset.