Suppose That the Labor Supply Curve for a Large University

question 13

Multiple Choice

Suppose that the labor supply curve for a large university in a small town is given by w = 140 + 0.02L, where L is number of units of labor per week and w is the weekly wage paid per unit of labor.If the university is currently hiring 1,000 units of labor per week, the marginal cost of an additional unit of labor

• A)equals the wage rate plus $40.
• B)is twice the wage rate.
• C)equals the wage rate plus $20.
• D)equals the wage rate.
• E)equals the wage rate plus $60.

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Definitions:

Functional Structure

An organizational configuration that divides the company based on specialization, where each organizational unit performs a specific function.

Process Structure

Refers to the arrangement and organization of various components within a process, including tasks, resources, and workflows, aimed at achieving efficient operations and outcomes.

Network Structure

The arrangement or organization of interconnected nodes or elements within a network, influencing its function and performance.

Overhead

The ongoing administrative expenses and operational costs not directly tied to the production of goods or services.