Use the Following to Answer Question(s)

question 184

Multiple Choice

Use the following to answer question(s) :
-(Exhibit: Marginal Revenue Product and Demand) Assume that the product price is $2 per unit, the price of the factor of production is $20 per unit, and 8 units are being hired.Profit can be maximized by hiring _______ unit(s) .

• A) 1 more
• B) 2 more
• C) 1 fewer
• D) 2 fewer

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Definitions:

Flotation Cost

The total costs incurred by a company in issuing new securities, including underwriting, legal, registration, and distribution fees.

External Financing

denotes the process of obtaining capital from outside sources, like banks or investors, to fund operations, expansions, or projects.

Market Value

The prevailing price for an asset or service that is available for transaction in an open marketplace.