Exhibit 27-12

-Refer to Exhibit 27-12. As the firm increases employment from 3 to 4 workers, its marginal factor cost (MFC) is

Question

Exhibit 27-12
 
-Refer to Exhibit 27-12. As the firm increases employment from 3 to 4 workers, its marginal factor cost (MFC) is

Quizplus · Accepted Answer

The marginal factor cost (MFC) is the additional cost the firm incurs by employing one more worker. It is calculated as the change in total cost divided by the change in the quantity of labor. Without specific data from Exhibit 27-12, we can't calculate the exact figure, but if the correct answer is given as B) $26, it implies that the total cost of employing one more worker (from 3 to 4 workers) increases by $26.

Exhibit 27-12 -Refer to Exhibit 27-12. as the Firm Increases Employment from Firm