The table below shows how the number of workers employed per hour by a profit-maximising firm affects its total output per hour and the price at which it can sell that output.
| Number of workers | Total output per hour | Price (£) |
|---|---|---|
| 1 | 5 | 8.00 |
| 2 | 11 | 7.00 |
| 3 | 18 | 6.00 |
| 4 | 24 | 5.50 |
| 5 | 28 | 5.00 |
The firm pays its workers £25 per hour. It has no other variable costs, and its fixed costs are £5 per hour.
How many workers will the firm employ?
2
3
4
5
64 exam-style questions on AQA A Level Economics 1.6 The labour market (A-level only), covering 1.6.1 The demand for labour, marginal productivity theory, 1.6.2 Influences upon the supply of labour to different markets, 1.6.3 The determination of relative wage rates and levels of employment in perfectly competitive labour markets, 1.6.4 The determination of relative wage rates and levels of employment in imperfectly competitive labour markets, 1.6.5 The Influence of trade unions in determining wages and levels of employment, 1.6.6 The National Minimum Wage, and 1.6.7 Discrimination in the labour market. Each one has a worked solution and a mark scheme showing where the marks go.