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Question
Table 17-1| Quantity of Labor | Output (units) |
| 1 | 80 |
| 2 | 170 |
| 3 | 240 |
| 4 | 300 |
| 5 | 350 |
| 6 | 390 |
| 7 | 420 |
Refer to Table 17-1. Suppose the output price is $3. If the wage rate is $90, what is the profit-maximizing quantity of labor that the firm should hire?
A) 7 units
B) 5 units
C) 4 units
D) 3 units
Answer
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