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Question 56

Multiple Choice

Questions are based on the data in the following table. Assume that the labor market is perfectly competitive.




 Labor  Output 00115229342454565675 Price (D1) $10.0010.0010.0010.0010.0010.0010.00 Price (D2) $10.009.509.008.507.506.505.50\begin{array}{cc}\begin{array}{cc}\text { Labor } & \text { Output } \\\hline0& 0 \\1 & 15 \\2 & 29 \\3 & 42 \\4 & 54 \\5 & 65 \\6 & 75\end{array}\begin{array}{c}\text { Price }\left(D_{1}\right) \\\hline\$ 10.00 \\10.00 \\10.00 \\10.00 \\10.00 \\10.00 \\10.00 \\\end{array}\begin{array}{c}\text { Price }\left(\mathrm{D}_{2}\right) \\\hline \$ 10.00 \\9.50 \\9.00 \\8.50 \\7.50 \\6.50 \\5.50\end{array}\end{array}
-Suppose the firm's product demand is given by the column labeled D1.If the wage rate is $100,the firm will achieve maximum profit by hiring _____ workers.


A) 3
B) 4
C) 5
D) 6

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