Figure 18-2

question 99

Multiple Choice

Figure 18-2.The figure shows a particular firm's value-of-marginal-product (VMP) curve.On the horizontal axis,L represents the number of workers.The time frame is daily.
-Refer to Figure 18-2.Suppose one point on the firm's production function is
(L = 3,Q = 180) ,where L = number of workers and Q = quantity of output.If the firm sells its output for $5 per unit,then

• A) a second point on the firm's production function is (L = 4,Q = 216).
• B) the firm's production function exhibits the property of diminishing marginal product of labor.
• C) the firm will maximize profit by hiring four workers if it pays workers $160 per day.
• D) All of the above are correct.

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Definitions:

Random Points

Specific locations or values chosen without any particular pattern, order, or predictability.

Area

The amount of space inside a two-dimensional region, such as a floor; area is measured in square units; the living space in a property.

Diagonals

Straight lines connecting two non-adjacent vertices in a polygon or polyhedron.

Rectangle

A quadrilateral with four right angles and two pairs of parallel and equal sides.