If Ten Cases of Pretzels Are Sold at a Price

question 167

Multiple Choice

If ten cases of pretzels are sold at a price of $8 each and the marginal product of the last unit of labor is 5, the firm's total revenue is

• A)$80
• B)$30
• C)$50
• D)$6
• E)$150

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and in the creation of innovations and inventions.

Real Wages

Wages adjusted for inflation, representing the true purchasing power of income.

Capital Equipment

Capital equipment consists of tangible assets such as buildings, machinery, and tools that are used in the production process to generate goods and services.

Nominal Wages

The wage earned by workers as expressed in current dollars, without adjustment for inflation, representing the face value of the pay received.