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

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Definitions:

Freudian Theory

A psychological theory developed by Sigmund Freud that emphasizes unconscious motivations and conflicts as the basis of human behavior.

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Freudian Theory

A psychological theory developed by Sigmund Freud that emphasizes the influence of the unconscious mind on behavior, and introduces concepts such as the id, ego, and superego.

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