The Labor Supply Curve Faced by a Large Firm in a Small

question 11

Multiple Choice

The labor supply curve faced by a large firm in a small city is given by w = 60 + 0.05L, where L is the number of units of labor per week hired by the large firm and w is the weekly wage rate that it pays.If the firm is currently hiring 1,000 units of labor per week, then the marginal cost of a unit of labor to the firm

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

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Definitions:

Cross Section

A diagram or representation showing the internal structure of something when cut along an imaginary line.

Circular Runout

A tolerance that limits the total variation a surface can have when rotated around a central axis, ensuring roundness and smooth operation of rotating parts.

Total Runout

A composite tolerance applied to a feature which controls both its form and its orientation to a datum axis.

Datum Axis

An imaginary line or surface referenced in manufacturing or inspection of parts and assemblies to ensure coordination and correctness of dimension and tolerance specifications.