Exhibit 21-14 Assume That Labor Is the Only Variable

question 51

Multiple Choice

Exhibit 21-14 Assume that labor is the only variable input and that each additional laborer is paid $600.
Refer to Exhibit 21-14. What is the marginal cost of producing this good with 3 and 4 laborers working [blanks (G) and (H) ], respectively?

• A)$200; $150
• B)$60; $30
• C)$12; $40
• D)$6; $8

Determine the impact of price changes on the optimal consumption bundle.

Apply the concept of indifference curves to demonstrate preferences and trade-offs between two goods.

Explain the significance of the rate at which goods are substituted to maintain consumer satisfaction.

Distinguish between points of utility maximization under current and altered budgetary conditions.

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Definitions:

Exemptions

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Section 10(b)

A provision under the Securities Exchange Act of 1934, which prohibits securities fraud and insider trading in the stock market.

SEC Rule 10b-5

SEC Rule 10b-5, issued under the Securities Exchange Act of 1934, prohibits fraudulent activities in connection with the purchase or sale of securities, including insider trading and making false or misleading statements.

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