11) Figure below depicts a firm's marginal revenue product curve. If the firm maximizes its profit and the hourly wage is $14, how many hours of labor will the firm demand? $16 $14 $10 30 40 50 Quantity of labor. a) 30 hours b) between 30 hours and 40 hours c) 40 hours d) greater than 50 hours

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 4CQQ
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11) Figure below depicts a firm's marginal revenue product curve. If the firm maximizes its
profit and the hourly wage is $14, how many hours of labor will the firm demand?
$16
$14
$10
30 40 50
Quantity of labor.
a) 30 hours
b) between 30 hours and 40 hours
c) 40 hours
d) greater than 50 hours
Transcribed Image Text:11) Figure below depicts a firm's marginal revenue product curve. If the firm maximizes its profit and the hourly wage is $14, how many hours of labor will the firm demand? $16 $14 $10 30 40 50 Quantity of labor. a) 30 hours b) between 30 hours and 40 hours c) 40 hours d) greater than 50 hours
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