Suppose a Firm Uses Workers and Office Space to Produce

question 96

Multiple Choice

Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The table below describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day. $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Employee-Hours } \\\text { Per Day }\end{array} & \begin{array} { c } \text { Output } \\\text { Per Day }\end{array} \\\hline 0 & 0 \\\hline 1 & 40 \\\hline 4 & 80 \\\hline 9 & 120 \\\hline 15 & 160 \\\hline 23 & 200 \\\hline\end{array}$$ When the firm uses 9 employee-hours, its total cost each day is:

• A)$126
• B)$64
• C)$56
• D)$176

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Definitions:

Meaning in Existence

A philosophical concept that refers to the significance or purpose one finds in life.

Humanist Approach

A psychological perspective that emphasizes the study of the whole person and the uniqueness of each individual.

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A characteristic of an idea or concept that seems correct or attractive based on intuition or an immediate understanding, without the need for deep analysis.

Operationally Define

The process of strictly defining variables into measurable factors to clarify how they will be observed and measured in a study.