Refer to the Following Graph

question 54

Multiple Choice

Refer to the following graph.The price of labor is $3 per unit: How many units of labor should a firm use in order to produce 100 units of output at the least cost?

• A)5 units of labor
• B)10 units of labor
• C)15 units of labor
• D)20 units of labor

---

Definitions:

Normative Economics

A branch of economics that focuses on what ought to be or what should be, often based on value judgments and opinions.

Positive Economics

A branch of economics that focuses on factual and cause-and-effect relationships, avoiding value judgments about what ought to be.

Production Possibility

A concept representing the various combinations of goods and services an economy can produce, given certain resources and technology.

Linear Production

A production process where inputs are combined in fixed proportions and the output level changes linearly with changes in input levels.