Table 18-7
the Table Displays Data for a Small, Competitive

question 146

Multiple Choice

Table 18-7
The table displays data for a small, competitive, profit-maximizing firm that produces and sells envelopes. Assume that labor is the only input that varies for the firm.
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$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Labor } \\\text { (Number of workers) }\end{array} & \begin{array} { c } \text { Marginal Product of Labor } \\\text { (Boxes of envelopes per week) }\end{array} & \begin{array} { c } \text { Wage } \\\text { (Dollars per } \\\text { worker per week) }\end{array} \\\hline 0 & & \\\hline 1 & 133 & 393 \\\hline 2 & 111 & 393 \\\hline 3 & 93 & 393 \\\hline 4 & 83 & 393 \\\hline 5 & 75 & 393 \\\hline\end{array}$$ ​
-Refer to Table 18-7. Suppose the firm sells each box of envelopes that it produces for $5. The firm would not be interested in hiring a fifth worker unless the wage fell from its current level of $393 to what level?

• A)$386
• B)$380
• C)$376
• D)$375

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Definitions:

Teratogenic Agents

Substances or environmental factors that can lead to congenital abnormalities or developmental disorders when a fetus is exposed during pregnancy.

Spontaneous Abortion

Refers to the natural end of a pregnancy before the fetus can survive outside the womb, often known as a miscarriage.

Gestation

The period of time between the fertilization of an egg and the birth of an organism, commonly used in reference to pregnancies.

Malnutrition

A condition resulting from an imbalanced diet in which nutrients are either insufficient or excessive, leading to health problems.