Use the Accompanying Graph, Which Depicts Mighty Max's Labor Demand

Multiple Choice

Use the accompanying graph, which depicts Mighty Max's labor demand for his duffle-bag business, to answer the questions that follow.

-If the wage of the fifth worker is $20 and her value of the marginal product of labor is $5,the firm:

A) benefits by stopping at this level of labor.
B) is likely to fire the fifth worker.
C) asks this fifth worker to work overtime.
D) benefits by hiring more workers.
E) is likely to lose profit by hiring more workers.