Figure 18-1 on the Graph, L Represents the Quantity of Labor and Labor

question 483

Multiple Choice

Figure 18-1
On the graph, L represents the quantity of labor and Q represents the quantity of output per week.
-Refer to Figure 18-1. Suppose the firm sells its output for $10 per unit, and it pays each of its workers $400 per week. When the number of workers increases from 4 to 5, the

• A)marginal revenue is $450 per unit of output, and the marginal cost is $400 per unit of output.
• B)value of the marginal product of labor is $3,900, and the marginal cost per unit of output is $400.
• C)value of the marginal product of labor is $450, and the marginal cost per unit of output is about $8.89.
• D)firm's profit increases.

Grasp the fundamental concepts of inflation and its measurement.

Comprehend the implications of money supply changes on price levels and the value of money.

Explain the quantity theory of money and its relation to inflation.

Calculate inflation rates and understand their impact on the economy.

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