Exhibit 22-14 Assume That Labor Is the Only Variable Input

question 29

Multiple Choice

Exhibit 22-14

Assume that labor is the only variable input.
-Refer to Exhibit 22-14.What is the marginal cost of producing this good with 1 and 2 laborers working [blanks (E) and (F) ],respectively?

• A) $600; $300
• B) $60; $30
• C) $8; $12
• D) $6; $8
• E) none of the above

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Definitions:

Distribution Center

A warehouse or specialized facility where goods are stored, managed, and distributed to retailers or customers.

Washington

A state in the Pacific Northwest region of the United States, known for its large forest areas, the Cascade Range, and being the home of the city of Seattle.

Television Sets

Electronic devices designed to receive and display broadcasts of moving images along with sound, creating a visual entertainment medium.

Arkansas

A state located in the southeastern region of the United States known for its diverse landscapes ranging from mountains to rivers and forests.