Refer to the Following:
the Capital Stock Is Fixed at 40

question 57

Multiple Choice

Refer to the following:
The capital stock is fixed at 40 units, the price of capital is $15 per unit, and the price of labor is $80 per unit.
$$\begin{array} { c c } \text { units of } & \text { units of } \\\text { Labor } & \text { Output } \\\hline 5 & 40 \\10 & 100 \\15 & 180 \\20 & 220\end{array}$$
-How much does the 50th unit of output add to the firm's total cost?

• A) $6.67
• B) $10
• C) $400
• D) $600
• E) none of the above

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Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to what is considered normal or standard in a specific social group.

Asch

Refers to Solomon Asch, the psychologist famous for his research on conformity, including his experiment demonstrating how group pressure can lead individuals to conform to an incorrect answer.

Straight Lines

The simplest form of lines in geometry that extend infinitely in opposite directions without curving.

Social Pressures

The influence exerted by society or social groups on individuals, encouraging them to conform to specific norms or behaviors.