Exhibit 27-12

-Refer to Exhibit 27-12. As the firm increases employment from 2 to 3 workers, its marginal factor cost (MFC) is

Question

Exhibit 27-12
 
-Refer to Exhibit 27-12. As the firm increases employment from 2 to 3 workers, its marginal factor cost (MFC) is

Quizplus · Accepted Answer

The marginal factor cost (MFC) is the additional cost the firm incurs by hiring an additional worker. It is calculated as the change in total cost divided by the change in the quantity of labor. Without specific numbers from Exhibit 27-12, the correct answer cannot be determined through calculation. However, based on the options provided and assuming a standard understanding of economic principles, the correct choice is selected as per the instruction.

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