Figure 9-4 Figure 9-4 Shows the Cost and Demand Curves

question 206

Multiple Choice

Figure 9-4
Figure 9-4 shows the cost and demand curves for a profit-maximizing firm in a perfectly competitive market.
-Refer to Figure 9-4.If the market price is $30 and if the firm is producing output,what is the amount of its total variable cost?

• A) $7,200
• B) $6,480
• C) $5,400
• D) $3,960

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Definitions:

Demand for Labor

The total amount of workers that employers are willing and able to hire at a given wage rate in a certain period.

Union Membership

The state of being a member of a labor union, which is an organization that represents the collective interests of workers in negotiations with employers.

Manufacturing

The process of converting raw materials or components into finished goods through the use of tools, human labor, machinery, and chemical processing.

Right-to-Work Laws

Under the Taft-Hartley Act, states are permitted to pass these laws, which prohibit the union shop. (Union membership cannot be made a condition of securing employment.)