Suppose That a Competitive Firm Hires Labor Up to the Point

question 151

Multiple Choice

Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage.If the firm pays a wage of $700 per week and the marginal product of labor equals 20 units per week,then the marginal cost of producing an additional unit of output is

• A) $35
• B) $70
• C) $700
• D) We do not have enough information to answer this question.

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Definitions:

New-product Ideas

Concepts or proposals for new goods or services that a company can potentially develop and offer to the market.

Concept Test

An evaluation process that involves presenting an idea for a product or service to a target audience to determine its feasibility and the potential interest of consumers.

Cross-functional New-product Development Team

A group comprising members from different departments working together to develop a new product.

New-product Idea

A concept for a product that has not yet been introduced to the market, potentially fulfilling a new consumer need or desire.