When the Wage Rate Is $10 Per Hour and the MPP

question 112

Multiple Choice

When the wage rate is $10 per hour and the MPP of a worker is 15 units per hour,the unit labor cost is

• A)$0.67 per unit.
• B)$10.00 per hour.
• C)$15.00 per unit.
• D)$150.00 per hour.

---

Definitions:

Sherman Act

A foundational antitrust law in the United States aimed at prohibiting monopolistic business practices and ensuring competition.

United States v. Colgate & Co.

A landmark 1919 U.S. Supreme Court case that established the Colgate doctrine, allowing manufacturers to set their product prices provided they do not use coercive methods.

Vertical Maximum Price-fixing

An arrangement where the manufacturer or a higher level in the supply chain sets a maximum price that retailers cannot exceed in selling a product.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed by Congress in 1890 to prohibit monopolies and restrict business practices that reduce competition.