A firm can produce 450 gallons of milk per day with 4 workers and 500 gallons per day with 5 workers. The marginal product of the fifth worker expressed in gallons per worker per day, is:
a. 35.
b. 50.
c. 70.
d. 350.
b
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Which of the following equations represents the expenditure approach?
a. GDP = C + I + G + (X – M) b. GDP = C – I – G – (X + M) c. GDP = C + I + G x (X – M) d. GDP = C – I + G x (X + M)
A 10 percent increase in the price of computer apps leads to a 1 percent decrease in the quantity demanded of copmputer apps. The absolute price elasticity of demand for computer apps is
A. 9. B. 10. C. 0.1. D. 1.
Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that we observe Joe staying open 6 hours per day
If he is following the marginal principle, what must his marginal cost per hour be? A) $16 B) $24 C) $32 D) $48
If the Fed orders an expansionary monetary policy, describe what will happen to the following variables relative to what would have happened without the policy:
a. The money supply b. Interest rates c. Investment d. Consumption e. Net Exports f. The aggregate demand curve g. Real GDP h. The price level