Exhibit 11.2 -Refer to Exhibit 11.2,which Shows the Labor Market.The Vertical Axis

question 17

Multiple Choice

Exhibit 11.2

-Refer to Exhibit 11.2,which shows the labor market.The vertical axis measures wage in dollars,and the horizontal axis measures labor in hours.The tenth unit of labor is earning a wage of _____

• A)$4, all of which is economic rent.
• B)$4, none of which is economic rent.
• C)$8, all of which is economic rent.
• D)$8, none of which is economic rent.
• E)$8, half of which is economic rent.

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Definitions:

Output

Output refers to the total quantity of goods and services produced by an economy or business in a specific period.

Marginal Product

The supplementary yield achieved by the utilization of one additional unit of a variable factor, with all other resources remaining fixed.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent or salaries, over a relevant period.

Variable Cost

Refers to expenses that vary directly with the level of production or output, such as raw materials and labor costs.