Table 8.4 -Refer to Table 8.4.When the Second Worker Is Hired,the Marginal

question 88

Multiple Choice

Table 8.4
-Refer to Table 8.4.When the second worker is hired,the marginal cost is equal to

• A) $2.
• B) $3.
• C) $6.
• D) $50.

---

Definitions:

Profitable Output

The level of production at which a business or entity maximizes its profit, considering its cost structure and market demand.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, that sells goods or services to make a profit.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing the additional gain beyond the normal profit level.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production rather than earning income elsewhere.