Suppose the Marginal Product of Labor Equals 1/L

question 45

Multiple Choice

Suppose the marginal product of labor equals 1/L.If the firm can sell its output for $10 per unit,and the wage is $1 per unit,how many units of labor will the firm hire?

• A) 0
• B) 1
• C) 10
• D) 100

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Definitions:

Service Department Charges

These are the costs allocated to the production departments from service departments within a company, assisting in accurately assessing the cost of production.

Income from Operations

An alternative term for Operating Income, highlighting earnings generated from a company's regular business activities.

Gross Profit

The income a company retains after subtracting the costs directly associated with production but before deducting operating expenses.

Locomotive Division

A business segment within a larger company that specializes in the development, manufacture, or maintenance of locomotives.