Firm X Sells Output at a Price of $8 Per

question 40

Multiple Choice

Firm X sells output at a price of $8 per unit and pays labor a wage of $20 per hour. The marginal product of labor is given by: MPL = 12 - .1L. To maximize profit, the firm should utilize _____ hours of labor.

• A) 75
• B) 80
• C) 85
• D) 90
• E) 95

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Definitions:

Hydraulic Vane Pump

A type of hydraulic pump used for high-pressure fluid power applications, which utilizes vanes within a rotating cylinder to pump fluids through hydraulic systems.

Heavy-Duty Truck

A classification of truck designed for transporting large loads or performing tasks that require significant power, durability, and capacity.

Power-Assisted Steering Circuit

A hydraulic or electric system in vehicles that reduces the effort required by the driver to turn the steering wheel.

Non-Positive Displacement

A type of pump or motor wherein the fluid or gas flow rate does not have a direct correlation with the speed of the moving parts, allowing for variable output.