Use the Following Table to Answer the Following Questions

question 40

Multiple Choice

Use the following table to answer the following questions:

-If the workers are paid $10 per hour,the price of the product is $4,and the fixed cost of the business is $10,then how many workers should the business employ?

• A) three
• B) four
• C) five
• D) six
• E) seven

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Definitions:

Demand Determined

A market characteristic where the quantity of products or services provided is primarily set by the level of demand.

Fixed Supply

A situation where the quantity of a specific good available in the market cannot be altered in the short term.

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced with the number of hours worked.

Labor Demand Curve

A graphical representation showing the relationship between the quantity of labor demanded by firms and the wage rate.