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The Table Below Shows a Competitive Firm's Short-Run Production Function

Question 30

Multiple Choice

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. 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. 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 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

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