If the marginal revenue product of the fifth worker hired by a firm is $15 and the price of a unit of output is $5 regardless of how much is sold, then the marginal product of the fifth worker is
a. 15 units of output.
b. 5 units of output.
c. 3 units of output.
d. 45 units of output.
e. 75 units of output.
C
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Which of the following best summarizes the essence of the Invisible Hand Theorem?
a. Competitive markets guarantee that any shortages or surpluses existing in an economy will be quickly eliminated. b. Of all the possible economic systems, competitive markets are the most philosophically compatible with democracy and freedom. c. Within competitive markets, people who selfishly pursue their own interests end up achieving a socially desirable outcome. d. The social gain created by competitive markets is second only to what a hypothetical benevolent dictator could achieve.
If a plant manager is tasked to reduce costs by 10% this is an example of what kind of goal?
a. strategic b. long-term c. tactical d. operational
The basic formula for the price elasticity of demand coefficient is:
A. absolute decline in quantity demanded/absolute increase in price. B. percentage change in quantity demanded/percentage change in price. C. absolute decline in price/absolute increase in quantity demanded. D. percentage change in price/percentage change in quantity demanded.
When total product is maximized, marginal product
A. and average product are zero. B. is positive, but average product is zero. C. and average product are positive. D. is zero, but average product is positive.