Use the Following to Answer Questions

question 99

Multiple Choice

Use the following to answer questions:
-(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. Assume that the market for power cords is perfectly competitive. If the price of a power cord is $2 and the wage rate is $90 per hour, the profit-maximizing quantity of labor is _____ workers.

• A) zero
• B) two
• C) four
• D) six

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Definitions:

Moral Hazard

The risk that one party to a transaction has incentives to take undue risks because the costs incurred will not be fully borne by that party.

Homeowner's Insurance

An insurance policy that provides financial protection against disasters, theft, and accidents that may occur in one's home or on their property.

Locking Possessions

The act of securing personal or valuable items to prevent unauthorized access or theft.

Liability

A legal obligation or responsibility that can arise from contracts, torts, or other legal matters, potentially resulting in the need to pay damages or perform specific acts.