High Tech, Inc. produces plastic chairs that sell for $10 each. The following table provides information...

For simplicity, assume that labor is the only input. How many workers will be hired if the hourly wage for workers is $120? A) 5 B) More than 5 C) 0 D) 3

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Expert Solution

Ans: 0

Explanation:

A firm hires the number of workers at the point where VMPL is equal to higher than wage rate. It is seen from the table that at all number of workers VMPL is less than wage rate. Thus, it is concluded that the firm will hire 0 workers.

Thus, option [C] is correct answer.

Rahul Sunny answered 1 year ago

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