Use the Following Graph,which Depicts Mighty Max's Labor Demand for His

question 43

Multiple Choice

Use the following graph,which depicts Mighty Max's labor demand for his duffel bag business,to answer the following questions.The labor demand curve shown is calculated based on a duffel bag price of $10.

-Assume that the price of duffel bags is $10.If the marginal product of labor of the sixtieth worker drops by half,what is the value of the marginal product of labor of the sixtieth worker now?

• A) $10
• B) $15
• C) $20
• D) $25
• E) $30

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Definitions:

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market, including high start-up costs, stringent regulations, and established brand loyalty.

Pure Monopoly

A market structure where a single firm is the sole producer of a product or service with no close substitutes.

Small Town

A community with a small population, typically larger than a village but smaller than a city.

Foreign Exchange

The exchange of one currency for another or the conversion of one currency into another currency.