Figure 18-1 on the Graph, L Represents the Quantity of Labor and Labor

question 134

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 $25 per unit, and it pays each of its workers $1,000 per week. Also, the firm's non-labor costs are fixed and they amount to $2,000. The firm maximizes profit by hiring

• A)2 workers.
• B)3 workers.
• C)4 workers.
• D)5 workers.

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Definitions:

Sourcing Decision

The process of selecting suppliers to provide goods or services needed by a business.

Supply Chain

The sequence of processes involved in the production and distribution of a commodity, from raw materials to delivery of the finished product to the consumer.

Lower Tariffs

Reducing taxes or duties to be paid on imported goods, usually to encourage international trade.

Firm's Production

The total output of goods and services produced by a company within a specific period.