Figure 18-2 The Figure Below Shows the Production Function for a Particular

question 72

Multiple Choice

Figure 18-2
The figure below shows the production function for a particular firm.
-Refer to Figure 18-2. Suppose the firm pays a wage equal to $320 per unit of labor and sells its output at $15 per unit. How many units of labor should the firm hire to maximize profit?

• A)2 units
• B)3 units
• C)4 units
• D)5 units

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Definitions:

Negative Correlation

When one variable is high, the other variable tends to be low.

High

A state of elevated status, rank, or a measure, often referring to measurements, quantities, or feelings of euphoria.

Correlation

A mutual relationship or connection between two or more things where a change in one is associated with a change in the other.

Statistically Significant

Having a probability of less than 5% that the results are due to random chance.