Figure 18-5 The Figure Shows a Particular Profit-Maximizing, Competitive Firm's Value-Of-Marginal-Product (VMP)

question 90

Multiple Choice

Figure 18-5
The figure shows a particular profit-maximizing, competitive firm's value-of-marginal-product (VMP) curve. On the horizontal axis, L represents the number of workers. The time frame is daily.
-Refer to Figure 18-5. Suppose the marginal product of the fifth unit of labor is 30 units of output per day. The figure implies that the

• A)price of output is $4.
• B)price of output is $6.
• C)price of output is $8.
• D)daily wage is $120.

---

Definitions:

Statement

A written or digital document that records the details of a particular financial or operational activity within a specific period.

Cash Flows

The inflows and outflows of cash and cash equivalents, representing the operational, investing, and financing activities of a business.

Cash Balance

The amount of cash a company has available at any given time, reflecting the company's liquidity position.

Quality

The degree to which a product or service meets certain standards and satisfies customer expectations.