Suppose That the Firm's Only Variable Input Is Labor

question 13

Multiple Choice

Suppose that the firm's only variable input is labor.When 50 workers are used,the average product of labor is 50 and the marginal product of labor is 75.The wage rate is $80 and the total cost of the fixed input is $500.What is the marginal cost?

• A)$0.63
• B)$0.94
• C)$1.60
• D)$3.20
• E)none of the above

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Definitions:

Probabilities

Probabilities measure the likelihood of a particular event or outcome occurring, expressed as a number between 0 (impossible) and 1 (certain).

Expected Value

Expected value is a statistical concept that calculates the average outcome of a random event when considering all possible outcomes and their probabilities.

Probabilities

A measure of the likelihood that an event will occur, expressed on a scale from 0 (impossible) to 1 (certain).

Invest

Distributing financial resources with the aim of achieving financial gain or income.