Consider the Following Production and Cost Schedule for a Firm

question 41

Multiple Choice

Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm. $$\begin{array} { | c | l | l | c | } \hline \begin{array} { c } \text { Total Number of } \\\text { Units of the Factor }\end{array} & \begin{array} { c } \text { Total Number of } \\\text { Units of Output }\end{array} & \begin{array} { l } \text { Price per Unit } \\\text { of Output }\end{array} & \begin{array} { c } \text { Total Cost } \\\text { of Production }\end{array} \\\hline 2 & 12 & \$ 10 & \$ 50 \\\hline 3 & 20 & \$ 9 & \$ 55 \\\hline 4 & 26 & \$ 8 & \$ 60 \\\hline 5 & 30 & \$ 7 & \$ 65 \\\hline 6 & 32 & \$ 6 & \$ 70 \\\hline 7 & 32 & \$ 5 & \$ 75 \\\hline\end{array}$$ TABLE 13- 3
-If at a particular wage rate in a competitive labour market the quantity demanded of labour is less than quantity supplied of labour,then

• A)the demand curve for labour will shift to the right.
• B)some workers will begin to accept lower wages and induce employers to hire more workers.
• C)a black market for labour will form,with firms offering workers very high wages.
• D)the supply curve for labour will shift to the right.
• E)there will be a shortage of labour,thereby increasing the equilibrium wage rate.

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An individual who buys property without knowledge of any existing claims, disputes, or faults of the property, thereby obtaining legal ownership.

Security Liens

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Title to Goods

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