Business, 26.08.2019 00:00 kdobi

Suppose that the wage rate is $30 per hour, and the firm sells each unit of output for $6. using the data from table 7.3, how many units of labor will the firm hire?
a.2 units
b.3 units
c.4 units
d.5 units
3 unite is incorrect!

Answers: 1

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I found this data from Table 7.3
Labor Input Output
0   0
1   40
2 70
3   90
4 100
5 105
6 108

Labor Cost = Labor Input x 30
Output Sales = Output x 6
Revenue = Sales - Cost

Labor cost    Output Sales
0   0
30 240
60 420
90 540
120 600
150 630
180 648

Labor Input Output   Labor cost    Output Sales Revenue
0 0 0   0   0
1   40 30   240 210
2   70 60   420 360
3   90 90   540 450
4 100 120   600 480
5 105 150   630 480
6 108 180   648 468

Labor Unit 4 and 5 both have a revenue of 480. It is the maximum revenue. I think the best option would be C. 4 UNITS.

Lesser cost to the company at a maximum revenue.

Answer from: Quest

answer; encouraging the development of innovations by firms attempting to break a monopoly; (creative destruction)

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What are the options?

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Suppose that the wage rate is $30 per hour, and the firm sells each unit of output for $6. using the...

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