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

question 529

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 $20 per unit, and it pays each of its workers $1,250 per week. The firm maximizes profit by hiring

• A)3 workers.
• B)4 workers.
• C)5 workers.
• D)6 workers.

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Definitions:

Quantity Supplied

The volume of a commodity or service that sellers are ready and able to put on the market for a certain price within a designated period.

Reserves

Funds or materials set aside for future use or in case of an emergency, often referring to financial or resource stockpiles.

Flexible Exchange Rates

A system under which the value of a country's currency is allowed to fluctuate according to the foreign exchange market.

International Value

The worth or significance of goods, services, or assets on a global scale, often influenced by exchange rates and international trade.