When Firm a Hires One Worker It Pays $10 an Hour

question 43

Multiple Choice

When firm A hires one worker it pays $10 an hour and its total labor cost is $10. When it hires a second worker, it has to pay $11 to each of its two workers and its total labor cost is $22. When it hires a third worker, it has to pay $12 to each of its three workers and its total labor cost is $36. For firm A,

• A)its marginal factor cost is greater than the wage rate it pays, except for the first worker it hires.
• B)its marginal factor cost is greater than the wage rate it pays, except for the first two workers it hires.
• C)its supply curve of labor lies above its marginal factor cost curve.
• D)it is likely that marginal revenue product is always greater than marginal factor cost.
• E)none of the above

Understand the role of a feasibility study in the business planning process.

Identify the importance of market analysis and competitive analysis in a business plan.

Recognize the significance of conveying business weaknesses and strategies to overcome them.

Differentiate between the Business Model Canvas and more traditional business planning documents.

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Definitions:

Premixed Insulin

Insulin preparations that combine specific proportions of intermediate-acting and fast-acting insulin to simplify dosing for patients.

BGM

Blood Glucose Monitoring, which is a way of testing the concentration of glucose in the blood.

SMBG Testing

Self-Monitoring of Blood Glucose, a method used by individuals with diabetes to check their blood sugar levels regularly at home.

Insulin Activity

The biological action of insulin in regulating glucose levels in the blood, including its onset, peak time, and duration.