Bob's Baubles, Inc, sells its product for $3 each in a perfectly competitive market. If it increases its workforce from 1,000 to 1,001, its output goes from 615 to 625 per day. Its marginal revenue product for the 1,001st worker is:
a. $3
b. $1, 845.
c. $30.
d. $3,003.
c
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A tax on the sellers of cameras encourages
A. sellers to supply a smaller quantity at every price. B. buyers to demand a smaller quantity at every price. C. sellers to supply a larger quantity at every price. D. Both A) and B) are correct.
In the US we expect that during recessions
a. govt spending will increase b. tax revenues will decrease c. the federal budget will have a deficit d. all
Decisions to buy or sell securities at the Fed are made by the:
A. Congress. B. Federal Open Market Committee. C. Federal Deposit Insurance Corporation. D. President's Council of Economic Advisors.
If a monopolist were to produce in the inelastic segment of its demand curve:
A. total revenue would be at a maximum. B. marginal revenue would be positive. C. the firm would not be maximizing profits. D. it would necessarily incur a loss.