The Following Data Show the Total Output for a Firm

question 46

Multiple Choice

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50.
TABLE 7-3
-Refer to Table 7-3.The average product of labour is highest when the firm hires

• A)1 unit of labour.
• B)2 units of labour.
• C)3 units of labour.
• D)4 units of labour.
• E)5 units of labour.

Identify examples of survivor bias in research scenarios.

Recognize the importance of using random samples to avoid selection bias.

Interpret positive and negative correlations and their significances.

Assess the validity of research conclusions based on study design and sample selection.

---

Definitions:

Technology Spillover

An external benefit that results when knowledge spreads among individuals and firms.

Marginal Social Cost

The complete expense incurred by society for the production of one more unit of a product or service.

Public Park

A piece of public land in urban areas designated for recreational use by the general public, often maintained by local government.

Socially Optimum

A state where resources are allocated in the most efficient way from a societal perspective, maximizing social welfare.