The Table Below Shows the Total Production for Varying Numbers

question 17

Multiple Choice

The table below shows the total production for varying numbers of hours worked producing yo-yos.The firm sells its product and hires its workers in competitive markets.
TABLE 13-4
-Refer to Table 13-4.Which of the following statements best describes the situation of this firm when it is employing 12 hours of labour? The 12th hour of labour hired

• A)adds $10 to revenue and costs $10 to hire,so this firm is maximizing its profit at 12 hours of labour.
• B)adds $5 to revenue,but costs $10 to hire,so this firm should hire less labour.
• C)adds $30 to revenue,but only costs $10 to hire,so this firm should hire more labour.
• D)adds $8 to revenue,but costs $10 to hire,so this firm should hire less labour.
• E)adds $40 to revenue,but only costs $10 to hire,so this firm should hire more labour.

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Definitions:

Initial Margin

The minimum amount of equity that must be provided by an investor as part of the terms of a futures contract or other marginable securities.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future.

Total Value

The comprehensive worth of an asset or company, considering all sources of value including tangible and intangible factors.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined future date and price, commonly used for commodities or financial instruments.