(Table: Total Product of Labor at Debbie's Bakery) Debbie Owns

Multiple Choice

(Table: Total Product of Labor at Debbie's Bakery) Debbie owns a bakery and can hire workers to produce cakes selling in a competitive output market at $10 each.The table Total Product of Labor at Debbie's Bakery shows the relation between the number of workers and the number of cakes produced.Debbie must pay each worker a competitive market wage of $30 per day.Now suppose the government imposes a minimum wage law that all bakeries must pay no less than $50 per day.How will this affect her profit-maximizing hiring decision?

A) She reduces employment from six workers to one worker.
B) She reduces employment from six workers to five workers.
C) She reduces employment from six workers to four workers.
D) She increases employment from one worker to four workers.