Exhibit 22-8 -Exhibit 22-8 Shows How Output Varies with the Only Variable

question 225

Multiple Choice

Exhibit 22-8

-Exhibit 22-8 shows how output varies with the only variable input used in its production.If the cost of a unit of labor is $500,what is the approximate marginal cost of the 185th unit of output?

• A) $2.50
• B) $16.67
• C) $12.50
• D) $50.00
• E) $100.00

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Definitions:

Pricing Decisions

These are determinations made by businesses about how much to charge for their products or services, influenced by costs, demand, and competitive factors.

Profitability

The ability of a business to earn a profit, which is the surplus remaining from revenue after all costs are deducted.

Dual Facilities

Dual facilities refer to the strategy of maintaining two or more locations for production, storage, or business operations to enhance capacity, flexibility, or geographic reach.

Labor Market

Refers to the supply and demand for work, in which employers seek employees, and individuals seek employment.