Refer to the Data Provided in Table 10 -Refer to Table 10

question 60

Multiple Choice

Refer to the data provided in Table 10.1 below to answer the following question(s) .
Table 10.1 $$\begin{array}{l}\text { Total Labor Units } \quad \text { Total Product } \quad \text { Marginal Product of Price per }\\\begin{array} { c c c c } \text { (employees) } & \text { (T-shirts per day) } & \text { Labor (per day) } & \text { T-shirt } \\\hline 0 & 0 & - & - \\1 & 20 & 20 & \$ 5 \\2 & 50 & 30 & 5 \\3 & 75 & 25 & 5 \\4 & 95 & 20 & 5 \\5 & 110 & 15 & 5\end{array}\end{array}$$
-Refer to Table 10.1. If the payment to labor per day is $100, this T-shirt manufacturer is maximizing profits if he will hire ________ employee(s) .

• A) one
• B) two
• C) four
• D) five

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Definitions:

Efficiency

The extent to which resources are used in the most effective way to produce goods and services, minimizing waste.

Equality

Equality refers to the state of being equal, especially in status, rights, and opportunities.

Total Surplus

Total surplus refers to the sum of consumer surplus and producer surplus in a market, representing the overall benefit that market participants gain from engaging in trade.

High-cost Producer

A producer or company which has higher costs of production compared to competitors, often due to inefficient processes or higher input costs.