Figure 18-1

question 195

Multiple Choice

Figure 18-1.On the graph,L represents the quantity of labor and Q represents the quantity of output per week.
-Refer to Figure 18-1.Suppose the firm sells its output for $15 per unit,and it pays each of its workers $750 per week.When output increases from 210 units to 285 units,

• A) the marginal cost is $10 per unit of output.
• B) the marginal revenue is $5 per unit of output.
• C) the value of the marginal product of labor is $4,275
• D) the firm's profit decreases.

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Definitions:

Derivatives

Financial instruments whose value is based on the value of an underlying asset, index, or security.

Forward Contracts

A financial agreement to buy or sell an asset at a specific future date for a price agreed upon today.

Buyer

An individual or entity that acquires goods or services in exchange for payment.

Seller

An entity or individual that offers goods or services in exchange for payment, playing a crucial role in any market transaction.