The Following Table Shows the Total Output Produced by Different

question 72

Multiple Choice

The following table shows the total output produced by different units of a resource.Assume that the resource and output markets are both perfectly competitive.The equilibrium price of the resource is $15.00, and the equilibrium price of the product is $0.50. Table 14.2
Marginal revenue product (MRP) of a resource is the product of the marginal product of the resource and the marginal revenue.
Refer to Table 14.2.How many units of the resource will a profit-maximizing firm hire?

• A)Two labor hours
• B)Between two and three labor hours
• C)Between three and four labor hours
• D)More than four labor hours
• E)Three labor hours