Question

Refer to exhibit 27-5. assume the firm is a factor price taker and that the price of a unit of labor is constant at $360. the firm should hire __________ of labor. one unit two units three units four units five units

Answer 1

Four (4) units is the answer in this question. The firm should at least hire four units of labor. When we assume that the firm is a factor price taker and that the price of a unit of labor is constant at 360 dollars then the firm should hire 4 units of labor.