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The Following Figure Gives the Total Product of Labor at Different

Question 7

Multiple Choice

The following figure gives the total product of labor at different levels of labor use per day.The market price of the product is $10 per unit and the market wage rate is $8 per day.


 Labor  Employed  Total Product  (in units)  417520625728830\begin{array} { c | c } \begin{array} { l } \text { Labor } \\\text { Employed }\end{array} & \begin{array} { l } \text { Total Product } \\\text { (in units) }\end{array} \\\hline 4 & 17 \\5 & 20 \\6 & 25 \\7 & 28 \\8 & 30\end{array}
-Refer to Table .The marginal product of labor is the highest when the firm hires _____ workers.


A) 5
B) 6
C) 7
D) 8

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