Figure 1 -Refer to Figure 1

question 11

Multiple Choice

Figure 1
$$\begin{array} { c c c c } \begin{array} { c } \text { Labour (number of } \\\text { workers) }\end{array} & \begin{array} { c } \text { Output } \\\text { per hour }\end{array} & \begin{array} { c } \text { Marginal Product } \\\text { of Labour (MPL) }\end{array} & \text { Value of MPL } \\\hline 0 & 0 & \\1 & 5 & \\2 & 9 & \\3 & 12 & \\4 & 14 & \\5 & 15 &\end{array}$$
-Refer to Figure 1. If this profit-maximising firm sells its output in a competitive market for R30 per unit and hires labour in a competitive market for R80/hour, then this firm should hire

• A) one worker.
• B) two workers.
• C) three workers.
• D) four workers.
• E) five workers.

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Definitions:

Par Value

A nominal value or face value assigned to a share of stock by the company’s charter.

Acquisition Method

The accounting method used to consolidate the financial statements of a parent company and its acquired subsidiary.

Business Combinations

Occurs when one company acquires control over another, either through the purchase of shares, assets, or a merger.

Pooling of Interests

An accounting method used in business combinations that treats the entities as if they have been combined retroactively, distributing the equity shares among the combined entity's shareholders.