Suppose That a Competitive Firm Hires Labor Up to the Point

question 422

Multiple Choice

Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage and that labor is the only input that varies for the firm. If the firm pays a wage of $700 per week and the marginal product of labor equals 35 units per week, then the marginal cost of producing an additional unit of output is

• A)$20.
• B)$35.
• C)$700.
• D)We do not have enough information to answer this question.

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Definitions:

Anti-social Behaviours

Actions that harm or lack consideration for the well-being of others and disrupt the social order.

Emotionally Driven Goal

A goal or objective that is pursued primarily due to one's feelings or emotions rather than logical or practical reasons.

Casual Crowd

A chance collection of individuals in the same location at the same time.

Mob

A crowd that gathers to achieve an emotionally driven goal.