Suppose That a Competitive Firm Hires Labor Up to the Point

question 214

Multiple Choice

Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage and that labor is the only input that varies for the firm.If the firm pays a wage of $700 per week and the marginal product of labor equals 100 units per week,then the marginal cost of producing an additional unit of output is

• A) $7.
• B) $70.
• C) $700.
• D) We do not have enough information to answer this question.

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Definitions:

Presidential Reconstruction

The period immediately following the Civil War, wherein Presidents Abraham Lincoln and Andrew Johnson attempted to reintegrate the Southern states back into the Union with minimal changes to their social systems.

Enfranchisement

The act of giving someone the right to vote in political elections.

Johnson Supporters

Individuals who supported the policies or presidency of Andrew Johnson, the 17th President of the United States, particularly his approach to Reconstruction after the Civil War.

Fourteenth Amendment

An amendment to the U.S. Constitution, adopted in 1868, that grants citizenship to all persons born or naturalized in the United States and guarantees equal protection under the laws.