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:

Disadvantages

The negative aspects or drawbacks associated with a situation, decision, or action that may affect desired outcomes negatively.

Advantages

The beneficial aspects or positive outcomes that result from specific actions, strategies, or situations.

Equity Financing

is the process of raising capital through the sale of shares in an enterprise, effectively exchanging ownership rights for funding.

Family Businesses

Businesses owned and operated by multiple family members, often passed down from one generation to the next.