If Ten Cases of Spring Water Are Sold at a Price

question 68

Multiple Choice

If ten cases of spring water are sold at a price of $6 each in a perfectly competitive output market and the marginal product of the last unit of labor is 5, then the marginal revenue product of that last unit of labor is

• A)$60
• B)$30
• C)$50
• D)$2
• E)60 cents

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Definitions:

Labor Productivity

The output of goods and services produced per unit of labor input, often used as an indicator of economic efficiency.

Labor Force

The total number of people employed and unemployed, who are actively looking for work in an economy.

Population Growth

The growth in a population's size over a certain time frame.

Income Distribution

The way in which total income is shared among individuals or households in an economy.