$\text { Happy Tots Child Care }$ Price of a Unit of Output

question 43

Multiple Choice

$\text { Happy Tots Child Care }$
$\text { Units of Labor per }~~\text { Output per Week }~~\text { Marginal Product }\\Week~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~per ~Week\\\begin{array}{|c|c|c|}\hline ~~~~~~~~~~~~~~~1~~~~~~~~~~~~~~~~~ & ~~~~~~~~4 ~~~~~~~~~& ~~~~~~~4~~~~~~~~ \\\hline 2 & 9 & 5 \\\hline 3 & 13 & 4 \\\hline 4 & 16 & 3 \\\hline 5 & 18 & 2 \\\hline\end{array}$
Price of a unit of output: $\$ 150$ per week.
Cost to Happy Tots of hiring one more unit of labor: $\$ 400$ per week.
Table 16.1 Refer to Table 16.1.Suppose the cost of child care workers (units of labor) is the only cost the firm faces.How many units of labor would the firm need to hire to maximize profit?

• A) 2.
• B) 3.
• C) 4.
• D)5.

---

Definitions:

Private Placement

The sale of securities directly to a select group of investors and institutions rather than through a public offering.

Venture Capitalists

Individuals who fund startup businesses and small enterprises believed to have potential for long-term expansion, in return for a share of ownership.

General Public

Refers to the aggregate of individuals in society who are not actively involved in the planning or execution of business, governmental, or professional activities.

Economic Growth

An increase in the production of goods and services in an economy over a certain period, indicating the health of the country's economy.