Use the Following Information to Answer the Questions That Follow

question 75

Multiple Choice

Use the following information to answer the questions that follow.
Nicky L, owner of NLD Incorporated, knows that the marginal product of labor (MPL) for his workers can be defined as follows:
MPL = 32 - L
The total output a given level of workers can produce is found as:
Q = 32L - L²
He also knows that the price of his output is $3. His profits can be found as:
Profit = P × Q - W × L
-What wage would be required to allow Nicky L to hire the twenty-fifth worker?

• A) $3
• B) $7
• C) $21
• D) $125
• E) $25

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Definitions:

Investing Section

A part of the cash flow statement that shows the cash flow from all investing activities, which typically include purchases or sales of long-term assets like property, plant, and equipment.

Store Fixtures

Pieces of equipment or furniture used in a store to display products or support retail operations.

Gain on Sale

Gain on sale refers to the profit made from selling an asset for more than its book value.

Indirect Method

A method for creating the cash flow statement by modifying net income according to non-cash activities and fluctuations in working capital.