The Labor Supply Curve Faced by a Large Firm in a Small

question 2

Multiple Choice

The labor supply curve faced by a large firm in a small city is given by w = 60 + 0.08L, where L is the number of units of labor per week hired by the large firm and w is the weekly wage rate that it pays.If the firm is currently hiring 1,000 units of labor per week, then the marginal cost of a unit of labor to the firm

• A)is twice the wage rate.
• B)equals the wage rate.
• C)equals the wage rate plus $160.
• D)equals the wage rate plus $80.
• E)equals the wage rate plus $240.

---

Definitions:

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government in a specific period.

Inventory Cost Flow Assumptions

Assumptions made about how inventory costs move through a company's financial statements, including FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost methods.

Descriptive Statements

Statements that provide detailed information or explanation about a specific topic, often used in documentation or reporting.

LIFO

Last In, First Out, an inventory valuation method that assumes goods purchased last are the first ones sold, affecting the cost of goods sold and inventory valuation.