Suppose That the Labor Supply Curve for a Large University

question 2

Multiple Choice

Suppose that the labor supply curve for a large university in a small town is given by w = 140 + 0.05L, where L is number of units of labor per week and w is the 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)is twice the wage rate.
• B)equals the wage rate plus $50.
• C)equals the wage rate plus $100.
• D)equals the wage rate.
• E)equals the wage rate plus $150.

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Definitions:

Low-Income People

Individuals or families who earn income significantly below the median levels for their geographical area, often leading to financial hardships.

Dependent Children

Minors who rely on adults, usually their parents or guardians, for financial support and care.

Health Insurance

A form of insurance coverage that pays for medical and surgical expenses incurred by the insured.

U.S. Population

The total number of people living in the United States, a figure that is determined through census data.