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Columns 1 and 2 Make Up a Portion of a Monopolist's

Question 99

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Columns 1 and 2 make up a portion of a monopolist's production function for a single variable input,labor.Columns 2 and 3 represent the demand function facing the monopolist over this range of output: (1) Units of Labor34567(2) Units of Output370490570600620(3) Price$109876\begin{array}{c}\begin{array}{c}(1) \\\text {Units of Labor}\\3 \\4 \\5 \\6 \\7\end{array}\begin{array}{c}(2) \\\text {Units of Output}\\370 \\490 \\570 \\600\\620\end{array}\begin{array}{c}(3) \\\text {Price}\\\$10\\9\\8\\7\\6\end{array}\end{array}
If an increase in consumers' income increases product price by $2 at each level of output,how many units of labor will the firm employ at a wage rate of $300?


A) 3
B) 4
C) 5
D) 6
E) 7

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