If the Market Equilibrium Wage Rate is $105.00 and FC = $1500.00: A. The firm Shuts Down and hires no workers and loses $1500.00 B. The firm hires 45 workers and earns a $1200.00 Economic Profit C. The firm hires 55 workers earns a $975.00 Economic Profit D. The firm hires 40 workers and earns a $1200.00 Economic Profit

B. The firm hires 45 workers and earns a $1200.00 Economic Profit

Explanation:

According to the table, when the Market Equilibrium Wage Rate is $105, the number of workers to hire would be 45 and the revenue would be $7,425.

If 45 workers are hired, they would cost:

= 45 * 105 per worker

= $4,725

Added to the fixed cost, the total cost would be:

= 4,725 + 1,500

= $6,225

The profit would be:

= Revenue - cost

= 7,425 - 6,225

= $1,200

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