If Output Q = 8

question 1

Multiple Choice

If output Q = 8.5e (e = units of effort) and Wage,W = $6.70 + 0.25Q,then 20 units of effort are worth ______ to the firm.

• A)$170.00
• B)$0.425
• C)$49.20
• D)$35.80

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Definitions:

Production Possibilities

A concept in economics that describes the various combinations of goods and services that can be produced in an economy given its available resources and technology.

Joint Consumption

The characteristic of a good or service that can be consumed by more than one person at the same time without reducing its availability to others.

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced with a fixed amount of resources.

Resources

Inputs or factors used in the production of goods and services, including labor, capital, land, and technology.