The above figure shows the market for labor. The employer is a monopsony. The firm maximizes its profit by hiring
A) 800 hours of labor at a wage of $5 per hour.
B) 600 hours of labor at a wage of $10 per hour.
C) 400 hours of labor at a wage of $5 per hour.
D) 200 hours of labor at a wage of $5 per hour.
C
Economics
You might also like to view...
Aimee sells hand-embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $42,000, and the opportunity costs of her business are $30,000. What is her accounting profit?
A) $12,000 B) $56,000 C) $86,000 D) $98,000
Economics
Refer to Scenario 2. Diminishing marginal returns starts to occur between units:
A) 2 and 3. B) 3 and 4. C) 4 and 5. D) 5 and 6.
Economics