Suppose That the Labor Supply Curve for a Large University

question 12

Multiple Choice

Suppose that the labor supply curve for a large university in a small town is given by w = 160 + 0.05L, where L is number of units of labor per week and w is he weekly wage paid per unit of labor.If the university is currently hiring 1,000 units of labor per week, the marginal cost of an additional unit of labor

• A)equals the wage rate.
• B)equals the wage rate plus $50.
• C)is twice the wage rate.
• D)equals the wage rate plus $100.
• E)equals the wage rate plus $150.

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Definitions:

Hypotheses

Tentative explanations or propositions made on the basis of limited evidence, serving as a starting point for further investigation.

Critical Component

An essential element or part that is crucial for the functioning or success of a system, process, or mechanism.

Interventions

Actions or processes aimed at altering the current situation, typically to achieve improvements or solve problems.

Deduction

An analytical method where a final judgment is derived from the alignment of several assumptions considered to be accurate.