Suppose a Gift Shop in Corner Brook,Newfoundland,hires Workers to Personalize

question 4

Multiple Choice

Suppose a gift shop in Corner Brook,Newfoundland,hires workers to personalize ornaments for Christmas.The store sells the personalized ornaments for $6 each.The value of marginal product of this store's fourth worker is $60.The marginal product of the fourth worker is

• A)6 ornaments.
• B)10 ornaments.
• C)60 ornaments.
• D)360 ornaments.
• E)90 ornaments.

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Definitions:

Perfect Competition

A market structure characterized by an infinite number of small firms, identical products, and easy market entry and exit, leading to companies not having pricing power.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for some differentiation and price control.

Long-Run Economic Profits

The sustained extra income a firm generates when all inputs are variable, indicating the firm's long-term competitive advantage.

Monopolistic Competition

Monopolistic competition is a market structure where many companies sell products that are similar but not identical, allowing for product differentiation and some degree of market power.