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:

Sampling Distribution

The probability distribution of a statistic based on random samples from a population, used to estimate population parameters.

Standard Deviation

An indicator of the degree to which a dataset's values vary or are dispersed, showing the extent of deviation from the average.

Normal Distribution

A distribution of probabilities that is even on both sides of the mean, illustrating that values near the mean happen more often than values at a greater distance from the mean.

Weibull Distribution

A continuous probability distribution used widely in reliability engineering and failure analysis, which can model various types of data including life data and failure times.