Suppose That the Labor Supply Curve for a Large University

question 14

Multiple Choice

Suppose that the labor supply curve for a large university in a small town is given by w = 160 + 0.05L, 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.
• B) equals the wage rate plus $50.
• C) is twice the wage rate.
• D) equals the wage rate plus $100.
• E) equals the wage rate plus $150.

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Definitions:

Descriptive Norm

A perception of what is commonly done in specific situations, which influences individuals' behavior in social contexts.

Affiliation Goal

The motivation to build relationships or be connected with others.

Injunctive Norm

Social norms that are perceived as being approved of by other people, influencing behavior by suggesting what is socially acceptable.

Extended Fishbein Model

An advanced form of the Fishbein attitude model that considers not only beliefs and attitudes but also the role of behavioral intentions and subjective norms in predicting behavior.