Figure 18-2

Multiple Choice

Figure 18-2.The figure shows a particular firm's value-of-marginal-product (VMP) curve.On the horizontal axis,L represents the number of workers.The time frame is daily.
-Refer to Figure 18-2.Suppose one point on the firm's production function is
(L = 3,Q = 180) ,where L = number of workers and Q = quantity of output.If the firm sells its output for $5 per unit,then

A) a second point on the firm's production function is (L = 4,Q = 216) .
B) the firm's production function exhibits the property of diminishing marginal product of labor.
C) the firm will maximize profit by hiring four workers if it pays workers $160 per day.
D) All of the above are correct.