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The Table Below Shows a Competitive Firm's Short-Run Production Function Units of Labor  Units of Output33704490557066007620\begin{array}{cccc} \text {Units of Labor } & \text { Units of Output} \\3 &370\\4 &490\\5 &570\\6 &600\\7&620\\\end{array}

Question 62

Multiple Choice

The table below shows a competitive firm's short-run production function.Labor is the firm's only variable input,and market price for the firm's product is $2 per unit. Units of Labor  Units of Output33704490557066007620\begin{array}{cccc} \text {Units of Labor } & \text { Units of Output} \\3 &370\\4 &490\\5 &570\\6 &600\\7&620\\\end{array}

If market price for the firm's product increases to $5,how many units of labor will the firm employ at a wage rate of $200?


A) 0,the firm shuts down
B) 4
C) 5
D) 6
E) 7

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