Refer to the Information Provided in Figure 7

question 200

Multiple Choice

Refer to the information provided in Figure 7.6 below to answer the question(s) that follow. Figure 7.6
-Refer to Figure 7.6. If this shoe manufacturer increases labor from 20 to 25 (moving along the given isoquant with Q=50) , the marginal product of the 25th worker

• A) is zero, as the total number of shoes produced remains at 50.
• B) is 7.5, as capital can be reduced by 7.5 units when the 25th worker is hired.
• C) cannot be determined because output remains constant.
• D) cannot be determined because both capital and labor have been increased.

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Definitions:

Inverse Demand Function

A mathematical representation showing how price adjusts based on the quantity demanded by consumers.

Tax Imposed

A compulsory financial charge or levy placed by a governmental organization on individuals, entities, or transactions.

Grapefruit

A large, round, citrus fruit with a more bitter taste than oranges, often segmented and used in cooking or eaten fresh.

Civic Authorities

Government officials or bodies that are responsible for the governance and administration of a specific geographical area, typically at the local level.