Figure 18-1 on the Graph, L Represents the Quantity of Labor and Labor

question 483

Multiple Choice

Figure 18-1
On the graph, L represents the quantity of labor and Q represents the quantity of output per week.
-Refer to Figure 18-1. Suppose the firm sells its output for $10 per unit, and it pays each of its workers $400 per week. When the number of workers increases from 4 to 5, the

• A)marginal revenue is $450 per unit of output, and the marginal cost is $400 per unit of output.
• B)value of the marginal product of labor is $3,900, and the marginal cost per unit of output is $400.
• C)value of the marginal product of labor is $450, and the marginal cost per unit of output is about $8.89.
• D)firm's profit increases.

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