Asked by Jennifer Moore on May 10, 2024
Verified
Use the resource demand data shown on the left and the resource supply data on the right in answering the following question: Labor Demand Data ‾ Labor Supply Data ‾Employment‾0123456MarginalProduct‾0152839485560 Product Price ‾$2.202.001.801.601.401.201.00Employment‾0123456 Wage Rate ‾−−$1.002.003.004.005.006.00\begin{array}{c}\underline{\text { Labor Demand Data }}\quad\quad\quad\quad\quad\quad\quad\quad\underline{\text { Labor Supply Data }}\\\begin{array}{c}\\\underline{\text {Employment}}\\0\\1\\2\\3\\4\\5\\6\end{array}\begin{array}{c}\text {Marginal}\\\underline{\text {Product}}\\0\\15\\28\\39\\48\\55\\60\end{array}\begin{array}{c}\text { Product }\\\underline{\text { Price } }\\\$ 2.20 \\2.00 \\1.80 \\1.60 \\1.40 \\1.20 \\1.00 \end{array}\begin{array}{c}\\\underline{\text {Employment}}\\0\\1\\2\\3\\4\\5\\6 \end{array}\begin{array}{c}\text { Wage}\\\underline{\text { Rate }} \\-- \\\$1.00 \\2.00\\3.00 \\4.00 \\5.00 \\6.00\end{array}\end{array} Labor Demand Data Labor Supply Data Employment0123456MarginalProduct0152839485560 Product Price $2.202.001.801.601.401.201.00Employment0123456 Wage Rate −−$1.002.003.004.005.006.00
Refer to the given data.What will be the profit-maximizing wage rate?
A) $6.
B) $5.
C) $4.
D) $3.
Labor Demand Data
Information and statistics related to the number of workers that employers are willing and able to hire at different wage levels.
Labor Supply Data
Information and statistics regarding the availability of workers and their willingness to work at various wage levels.
Marginal Product
The additional output resulting from using one more unit of a particular input, assuming all other inputs remain constant.
- Understand the concept of profit-maximizing in labor markets.
Verified Answer
Learning Objectives
- Understand the concept of profit-maximizing in labor markets.
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