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A Pizza Shop's Marginal Product of Labor, Measured as the Number

Question 76

Multiple Choice

A pizza shop's marginal product of labor, measured as the number of pizzas delivered per week, is MPL = 55 - 5L, where L is the number of workers. The average price of a pizza in this highly competitive market is $10. The shop can hire workers at the market wage of $300 per week. There is a diminishing marginal product of labor when worker number ____ is hired.


A) 2
B) 3
C) 4
D) 5

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