If the Marginal Product of the Second Worker Hired by a Firm

question 37

Multiple Choice

If the marginal product of the second worker hired by a firm is 14 units and the price of the tenth unit of output is $7, then the marginal revenue product

• A)of the second worker is $98, regardless of the structure of the product market
• B)of the second worker is $98 if the firm is a price searcher in the product market
• C)of the second worker is $98 if the product market is perfectly competitive
• D)of the tenth worker is $98 if the product market is perfectly competitive
• E)of the tenth worker is $98 if the firm is a price searcher in the product market

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Definitions:

Labor Intensive

A term used to describe a process or industry that requires a large amount of manual labor relative to capital investment.

Alternative Technologies

Different or new technologies that provide an alternative way of solving problems or completing tasks, often with the aim of improving efficiency or environmental sustainability.

Marginal Product

The extra output, or increase in production, that results from adding one more unit of a specific input, while other inputs are kept constant.

Total Product

The total quantity of output produced by a firm over a given period of time.