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.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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.

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.
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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