Assuming both perfectly competitive labor and product markets, if a bushel of apples sells for $$\(\$ 10\)$$ and each hired worker costs $$\(\$ 20\)$$, how many workers should be hired to maximize profits?

A.
2
B.
3
C.
4
D.
5
E.
6
Microeconomics
AP
College Board
Exam No:AP Micro Practice Test 1 Year:2024 Question No:41

Answer:

D

Knowledge points:

3.1 The Production Function
3.5 Profit Maximization
5.3 Profit-Maximizing Behavior in Perfectly Competitive Factor Markets

Solution:

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