Refer to the Data Provided in Table 10 -Refer to Table 10

question 60

Multiple Choice

Refer to the data provided in Table 10.1 below to answer the following question(s) .
Table 10.1 $$\begin{array}{l}\text { Total Labor Units } \quad \text { Total Product } \quad \text { Marginal Product of Price per }\\\begin{array} { c c c c } \text { (employees) } & \text { (T-shirts per day) } & \text { Labor (per day) } & \text { T-shirt } \\\hline 0 & 0 & - & - \\1 & 20 & 20 & \$ 5 \\2 & 50 & 30 & 5 \\3 & 75 & 25 & 5 \\4 & 95 & 20 & 5 \\5 & 110 & 15 & 5\end{array}\end{array}$$
-Refer to Table 10.1. If the payment to labor per day is $100, this T-shirt manufacturer is maximizing profits if he will hire ________ employee(s) .

• A) one
• B) two
• C) four
• D) five

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User Cost

The cost associated with the use of a product or service, taking into account depreciation and the opportunity cost of alternative uses of the resources.

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The expenses associated with the removal of raw materials from their natural setting, which may include labor, equipment, and transportation costs.

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