If Labor Is a Firm's Only Variable Input, Marginal Cost

question 9

Multiple Choice

If labor is a firm's only variable input, marginal cost ultimately depends on

• A)fixed cost
• B)how much profit is made
• C)the price of the good produced
• D)how much output each worker produces
• E)fixed cost per unit

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Definitions:

Bid-Ask Prices

The prices at which buyers are willing to purchase (bid) and sellers are willing to sell (ask) financial securities in the markets.

Measurement Date

The specific date at which the fair value of assets and liabilities is determined for accounting purposes.

Unobservable Inputs

Inputs for which market data are not available and that are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability.

Fair Value Hierarchy

A system that prioritizes the inputs used in the valuation of assets and liabilities for financial reporting purposes.