Exhibit 21-14 Assume That Labor Is the Only Variable Input

question 20

Multiple Choice

Exhibit 21-14
Assume that labor is the only variable input and that each additional laborer is paid $600.
-Refer to Exhibit 21-14. What is the marginal cost of producing this good with 3 and 4 laborers working [blanks (G) and (H) ], respectively?

• A)$200; $150
• B)$60; $30
• C)$12; $40
• D)$6; $8
• E)none of the above

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Definitions:

Long-term Memory

A type of memory responsible for the storage of information over an extended period, ranging from several minutes to a lifetime.

Semantic Memory

Type of declarative memory containing general knowledge, such as knowledge of language and information learned in formal education.

Long-term Memory

Refers to the continuous storage of information over a prolonged period, beyond the scope of working memory, capable of holding a vast amount of information ranging from minutes to decades.

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.