If the Marginal Revenue Product of the Fifth Worker Hired

question 83

Multiple Choice

If the marginal revenue product of the fifth worker hired by a firm is $15 and the price of a unit of output is $5 regardless of how much is sold, then the marginal product of the fifth worker is

• A) 15 units of output.
• B) 5 units of output.
• C) 3 units of output.
• D) 45 units of output.
• E) 75 units of output.

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Definitions:

Production Possibilities Frontier

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Technological Improvement

Technological Improvement refers to advancements in technology that increase productivity and efficiency in the production of goods and services.

Inefficient Production

The process of producing goods or services in a way that uses more resources or takes more time than necessary, leading to wasted potential outputs.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.