Refer to the Data Provided in Table 16 -Refer to Table 16

question 119

Multiple Choice

Refer to the data provided in Table 16.1 below to answer the following questions.
Table 16.1 $$\begin{array} { c l l } \text { Tons of Salt } & \text { MC } & \text { MSC } \\\hline 1 & 10 & 20 \\2 & 20 & 30 \\3 & 30 & 40 \\4 & 40 & 50 \\5 & 50 & 60\end{array}$$
-Refer to Table 16.1. This salt processing firm is perfectly competitive and is not forced to take damage costs into account. If the market price of salt is $30 a ton, the firm will produce

• A) 0 tons of salt.
• B) 2 tons of salt.
• C) 3 tons of salt.
• D) 4 tons of salt.

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Definitions:

Surplus of Labor

A situation where the supply of labor exceeds the demand for it, often leading to unemployment or underemployment.

Minimum Wages

The lowest legal wage that can be paid to workers, set by government laws to protect employees from unduly low pay.

Structural Unemployment

A type of unemployment that results from a mismatch between the skills that workers offer and the skills demanded by employers.

Surplus of Labor

A situation in which the supply of labor exceeds the demand for labor, often resulting in unemployment or underemployment.