Use the Figure Below to Answer the Following Questions

question 71

Multiple Choice

Use the figure below to answer the following questions.

Figure 18.3.2
-Refer to Figure 18.3.2.This figure illustrates a monopsonist in the labour market.The profit-maximizing wage rate is ________ and the quantity of labour hired is ________.

• A)$4 per hour;800 hours
• B)$4 per hour;400 hours
• C)$7 per hour;600 hours
• D)$9 per hour;400 hours
• E)none of the above.

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Definitions:

Gross Profit

delineates the profit a company makes after subtracting the costs directly associated with making its products or providing its services.

Direct Labor

The labor costs associated with workers who are directly involved in the production of goods or provision of services.

Total Manufacturing Costs

The aggregate cost of direct materials, direct labor, and manufacturing overhead incurred in the production of goods.

Work in Process Inventory

The stock of partially finished goods still undergoing manufacturing processes.