The Acme Company Is a Perfect Competitor in Its Input

question 80

Multiple Choice

The Acme Company is a perfect competitor in its input markets and a monopolist in its output market. Its average product of labor is 30, the marginal product of labor is 20, the price of labor is $20, and the price of the output is $5. For Acme Company, the marginal revenue product of labor:

• A) is $100.
• B) is $150.
• C) is $400.
• D) is $600.
• E) cannot be determined with the information provided.

---

Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that unconditionally—naturally and automatically—triggers a response without prior conditioning.

Unconditioned Response

In classical conditioning, the automatic and natural reaction elicited by the unconditioned stimulus.

Neutral Stimulus

A neutral stimulus is a stimulus that initially produces no specific response other than focusing attention, until it is paired with an unconditioned stimulus.

Unconditioned Stimulus

In classical conditioning, an unconditioned stimulus is anything that naturally and automatically triggers a response without any learning needed.