Table 18-6
Consider the Following Daily Production Data for MadeFromScratch

question 5

Multiple Choice

Table 18-6
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day.
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$$\begin{array} { | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Labor } \\\text { (Number of } \\\text { workers) }\end{array} & \begin{array} { c } \text { Output } \\\text { (Cupcakes per } \\\text { day) }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Product } \\\text { of Labor } \\\text { (Cupcakes per } \\\text { day) }\end{array} & \begin{array} { c } \text { Value of the } \\\text { Marginal } \\\text { Product of Labor } \\\text { (Cupcakes) }\end{array} & \begin{array} { c } \text { Wage } \\\text { (Dollarsper } \\\text { worker per } \\\text { day) }\end{array} & \begin{array} { c } \text { Margin } \\\text { Profit } \\\text { (Dollar }\end{array} \\\hline 0 & 0 & & & 325 & \\\hline 1 & 200 & & & 325 & \\\hline 2 & 350 & & & 325 & \\\hline 3 & 475 & & & 325 & \\\hline 4 & 575 & & &325 & \\\hline\end{array}$$ ​
-Refer to Table 18-6. Suppose that there is a technological advance that allows MadeFromScratch employees to produce more cupcakes than they could before. Because of this change, the firm's

• A)demand for labor shifts right.
• B)demand for labor shifts left.
• C)supply of labor shifts right.
• D)supply of labor shifts left.

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Definitions:

Innate Emotions

Basic feelings or emotions that are hard-wired into the brain at birth through evolution.

James-Lange Theory

An early theory of emotion that proposes emotions occur as a result of physiological reactions to events.

Schachter Theory

A psychological theory suggesting emotions are determined by physiological arousal and the cognitive interpretation of that arousal.

Physiological Cues

Signals from the body that indicate states like stress or hunger, assisting in the understanding of bodily needs or reactions.