(Table: Value of the Marginal Product of Labor and Demand)

question 1

Multiple Choice

(Table: Value of the Marginal Product of Labor and Demand) In the figure Value of the Marginal Product of Labor and Demand, the total product of labor is shown for the hourly production of power cords.The price of a power cord is $2, the market wage rate is $40 per hour, and eight workers are hired.Profit can be maximized by hiring worker(s) .

• A)one more
• B)two more
• C)one fewer
• D)three fewer

---

Definitions:

Direct Cross-Subsidies

A financial practice where the revenue from one product or service directly supports another within the same company, often to maintain competitive pricing or support strategic objectives.

Above Market Rates

Compensation or prices that exceed the average or expected standard within a specific industry or market.

Free Meal

A meal provided without charge, often as a form of aid, hospitality, or marketing strategy.

Key Driver

A critical factor or element that significantly influences the outcome or success of a process, strategy, or business.