Exhibit 11-1
Use the Information in the Accompanying Chart to Answer

Exhibit 11-1
Use the information in the accompanying chart to answer the following question(s) . The firm hires labor competitively and sells its product in a competitive price-taker market. $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Units of Labor } \\\text { (per day) }\end{array} & \begin{array} { c } \text { T otal Output } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Product } \\\text { Price }\end{array} \\\hline 1 & 15 & 6 \\2 & 30 & 6 \\3 & 40 & 6 \\4 & 48 & 6 \\5 & 54 & 6 \\6 & 59 & 6 \\7 & 62 & 6 \\\hline\end{array}$$
-Refer to Exhibit 11-1. If the market wage rate is $25 per day, how many workers should the firm hire if it wants to maximize profits?

A) 4.
B) 5.
C) 6.
D) 7.

Correct Answer:

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