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Refer to the Following:
the Table Below Shows a Competitive Units of Labor Units of Output 33704490557066007620\begin{array}{ll} \text {Units of Labor }& \text {Units of Output }\\3 & 370 \\4 & 490 \\5 & 570 \\6 & 600 \\7 & 620\end{array}

Question 3

Multiple Choice

Refer to the following:
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 Output 33704490557066007620\begin{array}{ll} \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

Correct Answer:

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