Suppose That a Firm Has Only One Variable Input, Labor

question 625

Multiple Choice

Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers the firm produces 90 units of output. Fixed costs of production are $6 and the variable cost per unit of labor is $10. The marginal product of the seventh unit of labor is 4. Given this information, what is the marginal cost of production when the firm hires the 7th worker?

• A)$1.50
• B)$2.50
• C)$5
• D)$10

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Definitions:

Concrete Operational

A stage in Piaget's theory of cognitive development, typically occurring between ages 7 and 11, when children gain a better understanding of concrete and logical operations.

Formal Operational

A stage in Piaget's theory of cognitive development where individuals are able to think abstractly and logically.

Kohlberg's Theory

A theory of moral development proposed by Lawrence Kohlberg, suggesting that moral reasoning evolves through a series of stages from childhood into adulthood.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, rules, and laws.