Answer the Question on the Basis of the Following Information $\quad$

question 49

Multiple Choice

Answer the question on the basis of the following information: Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below.Assume the prices of labor and capital are $2 and $3 respectively. $\quad$$\quad$$\quad$$\quad$$\underline{\text { Production Techniques: }}$
$\begin{array}{c}\begin{array}{lll}\\\text { Labor}\\\text { Capital} \end{array}\begin{array}{c}1\\\hline 4 \\2\end{array}\begin{array}{c}II \\\hline 3 \\3 \end{array}\begin{array}{c}III\\\hline2 \\5\end{array}\begin{array}{c} IV \\\hline 5 \\1 \end{array} \end{array}$
Refer to the information.If the price of product A is $0.50,the firm will realize:

• A) an economic profit of $4.
• B) an economic profit of $2.
• C) an economic profit of $6.
• D) a loss of $3.

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Definitions:

Unions

Organizations formed by workers in various sectors to negotiate collectively with employers about wages, working conditions, benefits, and other aspects of labor rights and protections.

Property Rights

Legal rights over the ownership, use, and benefit from property, including real estate, intellectual property, and personal property.

Worker Rights

Refers to the legal and moral entitlements attributed to individuals in their capacity as employees, including fair wages, safe working conditions, and freedom from discrimination.

Property Rights

Legal rights to possess, use, and dispose of assets including real estate, personal property, or intellectual property.