Consider Labour That Is Hired for $18 Per Hour

question 33

Multiple Choice

Consider labour that is hired for $18 per hour.If the last hour of labour hired produces 8 units of output which sells for $10 per unit,that labour-hour adds ________ to the firm's profit and so ________ labour should be hired.

• A)$80; more
• B)-$80; less
• C)$62; less
• D)$62; more
• E)$0; no

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Definitions:

Simple Payback

A financial metric that calculates the time required to recoup the initial investment in a project or asset through cash inflows or savings.

Cash Flow

The total amount of money being transferred into and out of a business, project, or financial product.

Umbilical Cord

A flexible cordlike structure containing blood vessels, connecting a fetus in the womb to the placenta, and supplying the fetus with oxygen and nutrients while removing waste products.

Placenta

An organ that develops during pregnancy, facilitating nutrient uptake, waste elimination, and gas exchange via the mother's blood supply.