If an Additional Unit of Labor Costs $25 and Has

question 137

Multiple Choice

If an additional unit of labor costs $25 and has an MPP of 40 units of output,the marginal cost is:

• A) $0.63.
• B) $1.60.
• C) $25.00.
• D) $1,000.00

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to increase the number of shares outstanding while maintaining the same total market value.

Market Value

The existing cost for buying or selling an asset or service in the open market.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to increase liquidity without changing the shareholders' equity.

Par Value

The nominal or face value of a stock or bond as assigned by the issuing company, which may bear no relation to its market value.