The Wage Is $10 Per Hour

question 22

Multiple Choice

The wage is $10 per hour.What is the marginal cost of labor for the fourth unit of labor?

• A)$10
• B)$20
• C)$30
• D)$40

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Definitions:

D/A

Debt-to-Assets ratio, a financial metric indicating the proportion of a company's assets that are financed by debt.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profit that includes all incomes and expenses except interest and income tax expenses.

Common Share Price

The market price of a single share of a company's common stock, reflecting the company's valuation, investor sentiment, and market conditions.

WACC

Weighted Average Cost of Capital, a calculation of a firm's capital cost where each category of capital is proportionately weighted.