Imagine That You Are an Entrepreneur,making Designer T-Shirts in Your

question 43

Multiple Choice

Imagine that you are an entrepreneur,making designer t-shirts in your garage.Your accountant has estimated that your firm's total costs can be expressed by the function TC = 300 + 10 × Q,where Q represents the number of t-shirts you make.
Your fixed costs are _______ and your marginal cost is _____.

• A)$300;$10
• B)$300/Q;$30
• C)$300;$10 times quantity
• D)$300/Q;$10

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Definitions:

Labor Market

The supply and demand for labor, where employers are the demanders of labor and individuals are the suppliers.

Labor Supply Curve

A graphical representation showing the relationship between the quantity of labor workers are willing to offer and the wage rate, under ceteris paribus conditions.

Profit-maximizing

The strategy of adjusting input use and production output to achieve the greatest possible profit levels.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, like labor or capital, indicating the value of the marginal product of the factor.