Question

Table 1

The following table shows output per hour produced by the different units of labor.

Table 1

Number of Workers	Output per Hour	Price of the Product
0	0	$3
1	7	$3
2	12	$3
3	15	$3
4	17	$3
5	18	$3

The marginal revenue product of a resource is equal to the product of the marginal product of an input and marginal revenue.

     8.   According to Table 1, if the wage rate is $9 per hour, how many workers should this firm hire?

a.	1
b.	5
c.	4
d.	2
e.	3

     9. According to Table 1, the marginal-revenue product of the:

a.	fourth worker is $8.
b.	fifth worker is $3.
c.	first worker is $3.
d.	third worker is $5.
e.	second worker is $12.

   10.   According to Table 1, if the wage rate is $6 per hour, how many workers should this firm hire?

a.	3
b.	2
c.	4
d.	5
e.	1

           

   11.   Refer to Table 1. If both the wage rate and the price of the good falls to $2, how many workers would the firm hire?

a.	1
b.	2
c.	3
d.	4
e.	5

12.­ The structure of the product market as described by Table 1 is:

a.	monopolistic.
b.	oligopolistic.
c.	perfectly competitive.
d.	monopsonistic.
e.	monopolistically competitive.

Answer 1