-In the Above Table, What Is the Marginal Factor Cost

question 62

Multiple Choice

-In the above table, what is the marginal factor cost of the 4th worker?

• A) $16
• B) $30
• C) $64
• D) $22

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Definitions:

Interest Rate

The expense, quantified as a percentage of the principal, charged by a lender to a borrower for the use of resources.

Demand for Money

The desire to hold cash or easily liquidable assets, influenced by interest rates, income levels, and economic activity.

Contractionary Monetary Policy

A form of monetary policy that aims to reduce the rate of monetary expansion to tackle inflation, often by increasing interest rates.

Aggregate Demand

All-encompassing demand for goods and services within an economic framework, fixed at a particular price point and time frame.