Suppose a Firm Is Hiring 20 Workers at a Wage

question 12

Multiple Choice

Suppose a firm is hiring 20 workers at a wage rate of $60.The average product of labor is 30,the last worker added 12 units of output,and total fixed cost is $3,600.What is marginal cost?

• A)$.20
• B)$5
• C)$240
• D)$720
• E)none of the above

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Definitions:

Potential Revenue Stream

Future income that could be generated from a business activity or investment, not yet realized.

Operational CRM

Customer relationship management focused on the direct interactions with customers, aiming to enhance customer service, sales, and marketing operations.

Back-Office

Refers to the administrative and support personnel in a company who are not client-facing, involved with functions such as accounting, IT, and human resources.

Customer Acquisition

The process of bringing new customers to a business through various marketing and outreach strategies.