Table 18-1 -Refer to Table 18-1

question 131

Multiple Choice

Table 18-1 $$\begin{array} { | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Workers }\end{array} & \text { Output } & \begin{array} { c } \text { Marginal Product } \\\text { of Labor }\end{array} & \begin{array} { c } \text { Value of Margina1 } \\\text { Product of Labor }\end{array} & \text { Wage } & \text { Marginal Profit } \\\hline 0 & 0 & & & & \\\hline 1 & 100 & & \$ 1000 & \$ 500 & \$ 500 \\\hline 2 & & 80 & \$ 800 & \$ 500 & \\\hline 3 & & 60 & & \$ 500 & \$ 100 \\\hline 4 & 280 & & & \$ 500 & \\\hline 5 & & 20 & & & \\\hline\end{array}$$ $\begin{array}{|l|l|l|l|l|l|}\hline\begin{array}{l}\text { Number of } \\\text { Workers }\end{array} & \text { Output } & \begin{array}{l}\text { Marginal Product of } \\\text { Labour }\end{array} & \begin{array}{l}\text { Value of Marginal } \\\text { Product of Labour }\end{array}&\text { Wage }&\text { Marginal Profit } \\\hline &0&0\\\hline 1 & 25 & 25 & \$ 125 & \$ 40 & \$ 85 \\\hline 2 & 45 & 20 & \$ 100 & \$ 40 & \$ 60 \\\hline 3 & 60 & 15 & \$ 75 & \$ 40 & \$ 35 \\\hline 4 & 70 & 10 & \$ 50 & \$ 40 & \$ 10 \\\hline 5 & 75 & 5 & \$ 25 & \$ 40 & -\$ 15 \\\hline\end{array}$
-Refer to Table 18-1.If the firm hires three workers, the two workers together produce:

• A)25 units
• B)45 units
• C)60 units
• D)75 units

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Definitions:

Exemption Clause

A contractual term that limits or excludes one party's liability for certain breaches, circumstances, or events.

Fundamental Obligation

An essential or core duty that is imposed by law, contract, or moral imperative, critical to the framework within which it exists.

Breach of Condition

A violation of a specific condition set forth in a contract, which may entitle the non-breaching party to terminate the contract and seek damages.

Liquidated Damages

A predetermined amount of money that is agreed upon by parties in a contract to be paid as compensation in case of breach.