Suppose That a Competitive Firm Hires Labor Up to the Point

question 422

Multiple Choice

Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage and that labor is the only input that varies for the firm. If the firm pays a wage of $700 per week and the marginal product of labor equals 35 units per week, then the marginal cost of producing an additional unit of output is

• A)$20.
• B)$35.
• C)$700.
• D)We do not have enough information to answer this question.

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Definitions:

Aversive Conditioning

A method of behavioral training in which an undesirable behavior is paired with an unpleasant stimulus to reduce the behavior.

Classical Conditioning Therapies

Psychological treatment approaches that utilize the principles of classical conditioning to change maladaptive behaviors by associating them with new responses.

Aversive Conditioning

A behavioral technique that involves modifying behavior by associating an undesired behavior with an unpleasant stimulus.

Physical Pain

A distressing sensation and emotional experience associated with actual or potential tissue damage.