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:

Family Businesses

Businesses owned and operated by multiple family members, often passed down from one generation to the next.

Shareholders

Individuals or entities that own share(s) of stock in a corporation, thus holding a portion of the ownership and rights to profits.

Disadvantages

are the unfavorable or negative aspects of a situation, plan, or condition that may cause difficulties or reduce chances of success.

Life Cycle

The series of changes in the life of an organism, including birth, growth, reproduction, and death; it can also refer to similar stages in the development of products or organizations.