Economics 19th Edition by Stanley Brue, Cambell McConnell, Campbell McConnell, Sean Masaki Flynn, Sean Flynn

Exercise 3

In employing five workers, the firm represented in graph (b):
A) has a total wage cost of $6000.
B) is adhering to the general principle of undertaking all actions for which the marginal benefit exceeds the marginal cost.
C) uses less labor than would be ideal from society's perspective.
D) experiences increasing marginal returns.