If Output Rises from 175 Units Per Hour to 193

question 9

Multiple Choice

If output rises from 175 units per hour to 193 units per hour as another worker is hired and the additional worker receives $25 in wages per hour, assuming that labor is the only variable input, it follows that marginal cost is

• A)$450
• B)$4,825
• C)$4,375
• D)$45
• E)$0.45

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Definitions:

Currency Swap

A financial agreement to exchange currency between two parties at a set rate, often used to hedge currency risk.

Interest Rate Swaps

A financial derivative contract between two parties to exchange interest rate payments on a specified principal amount, typically involving the swap of fixed for variable interest rates.

Variable Rate

A type of interest rate that changes over time, usually in connection with a specific index or benchmark rate.

Index

An index is a statistical measure or indicator that tracks the performance of a basket of assets, stocks, or other financial instruments, often used as a benchmark for investment performance.