Suppose That a Firm Has Only One Variable Input, Labor

question 225

Multiple Choice

Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers it produces 90 units of output. Fixed cost of production are $6 and the variable cost per unit of labor is $10. The marginal product of the seventh unit of labor is 4. Given this information, what is the total cost of production when the firm hires 7 workers?

• A)$66
• B)$76
• C)$906
• D)$946

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Magnuson-Moss Warranty Act

A federal law in the United States that governs warranties on consumer products, aiming to protect consumers from deceptive warranty practices.

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A legal provision that limits the time within which an action can be brought, but unlike statutes of limitations, it is not tied to the discovery of harm but rather to the occurrence of a specific event, typically related to the completion of some act or process.

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