Suppose That a Firm Has Only One Variable Input, Labor

question 109

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 the firm produces 90 units of output. Fixed costs 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 average variable cost of production when the firm hires 7 workers?

• A)$12.67
• B)$11
• C)81 cents
• D)75 cents

Understand the challenges and strategies for forecasting HR demand and workforce planning in an international context.

Grasp the significance of aligning SIHRM practices with the firm's strategic goals.

Acknowledge the importance of understanding local labor markets, industries, and culture for SIHRM.

Learn about the different approaches to SIHRM.

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Definitions:

Blockage of CSF

An obstruction in the flow of cerebrospinal fluid (CSF), which can lead to conditions like hydrocephalus, influencing brain pressure.

Thalamus

A brain structure that acts as a relay center, processing and transmitting sensory and motor signals to the cerebral cortex.

Third Ventricle

A median cleft between the two halves of the brain that is filled with cerebrospinal fluid.

First Ventricle

Also known as the left ventricle, a chamber of the heart responsible for pumping oxygenated blood to the aorta and systemic circulation.