Ten Cases of Spring Water Are Sold for $6 Each

question 2

Multiple Choice

Ten cases of spring water are sold for $6 each, and the marginal product of the last unit of labor is 5. If the price of a case increases from $6 to $8, then the marginal revenue product of the last unit of labor would

• A) decrease by $10.
• B) increase by $40.
• C) decrease by $30.
• D) increase by $10.
• E) not change.

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Definitions:

Colonial Customs

Practices, behaviors, and traditions that were established and followed during the period of colonial rule in various countries.

Sugar Act

The Sugar Act of 1764 was a law enacted by the British Parliament raising duties on foreign refined sugar imported by the colonies, part of the events leading to the American Revolution.