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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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.
Please explain why the answer is c.

Transcribed Image Text:The image displays a graph with a labeled curve depicting a relationship between variables \( L \) and \( Q \).
### Graph Description:
- **Axes:**
- The horizontal axis (x-axis) is labeled \( L \), which could represent a variable such as labor units, quantity, or any logical measure in a given context. The values marked on this axis range from 0 to 6.
- The vertical axis (y-axis) is labeled \( Q \), possibly denoting output, quantity, or another dependent variable. The values range from 0 to 420, with specific intervals marked at 120, 210, 285, 345, 390, and 420.
- **Curve:**
- The graph features a smooth, upward-sloping curve, indicating a positive relationship between \( L \) and \( Q \).
- Several data points along the curve are marked with coordinates approximately at (1, 120), (2, 210), (3, 285), (4, 345), (5, 390), and (6, 420).
- **Grid Lines:**
- Horizontal and vertical dashed lines provide a clearer reference for each point on the curve.
This graph is likely representing a scenario where increases in \( L \) lead to increases in \( Q \), illustrating concepts such as marginal productivity or other economic principles where input and output relationships are analyzed.
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