Suppose That the Labor Supply Curve for a Large University

question 4

Multiple Choice

Suppose that the labor supply curve for a large university in a small town is given by w = 140 + 0.02L, where L is number of units of labor per week and w is the weekly wage paid per unit of labor. If the university is currently hiring 1,000 units of labor per week, the marginal cost of an additional unit of labor

• A) equals the wage rate plus $40.
• B) is twice the wage rate.
• C) equals the wage rate plus $20.
• D) equals the wage rate.
• E) equals the wage rate plus $60.

---

Definitions:

Competitive Disadvantage

A condition or circumstance that puts a company at a less favorable position in the market compared to its competitors.

Entrepreneurial Task

Activities or responsibilities undertaken by an entrepreneur in the process of starting and managing a business.

Investment Pools

Collective investment schemes where funds from multiple investors are pooled together to purchase securities.

Venture Capitalists

Investors who provide capital to startup companies or small businesses with the potential for long-term growth, often in exchange for equity.