Refer to the Information Provided in Figure 15

question 31

Multiple Choice

Refer to the information provided in Figure 15.2 below to answer the question(s) that follow. Figure 15.2
-Refer to Figure 15.2. If We Do Hair maximizes profits as a monopolistically competitive firm, its ________ equals $1,280.

• A) total cost
• B) profit
• C) total revenue
• D) loss

---

Definitions:

VMPL

Stands for the Value of Marginal Product of Labor, which is the additional revenue a firm earns by employing one more unit of labor.

Profit

The financial gain obtained when revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.

Factor Demand Curve

The relationship between the price of a factor of production and the quantity of that factor that is demanded, holding all else constant.

Final Product

A good or service that is consumed by the end-user and does not require further processing or transformation.