Figure 18-1 -Refer to Figure 18-1. Suppose the Firm Sells Its Output

Multiple Choice

Figure 18-1
-Refer to Figure 18-1. Suppose the firm sells its output for $13 per unit, and it pays each of its workers $165 per day. When the number of workers increases from 2 to 3, the

A) marginal revenue is $195 per unit of output, and the marginal cost is $165 per unit of output.
B) value of the marginal product of labor is $2,475, and the marginal cost per unit of output is $165.
C) value of the marginal product of labor is $195, and the marginal cost per unit of output is about $11.
D) firm's profit increases.