Refer to the Following Graph

question 28

Multiple Choice

Refer to the following graph.The price of capital (r) is $20. If,at the optimal combination of inputs for producing 14,000 units of output,the marginal product of capital is 40,what is the marginal product of labor?

• A)60
• B)40
• C)27.7
• D)80
• E)impossible to tell from the graph

---

Definitions:

Games-Of-Chance

Activities in which outcomes are determined primarily by random factors, usually for gambling or entertainment purposes.

Oligopoly Behavior

Market behavior characterized by a small number of firms dominating a market, where each firm's decisions impact the others, often leading to strategic pricing and output decisions.

Sequential Game

A strategic interaction (game) between two or more parties (players) in which each party moves (makes a decision) in a predetermined order (sequence).

Second Mover

A strategy where a firm enters a market or releases a product after competitors have already established themselves, potentially benefiting from the first mover's market insights and errors.