The Marginal Products of the First, Second, and Third Workers

question 52

Multiple Choice

The marginal products of the first, second, and third workers are 20, 12, and 8, respectively. If four workers can produce 45 units of output, then the marginal product of the fourth worker is

• A) 4.
• B) 5.
• C) 40.
• D) 45.

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Definitions:

Monopolies

A market structure characterized by a single seller who has exclusive control over a product or service, with no close substitutes.

Product Differentiation

The practice of highlighting the unique features of a product or service to increase its appeal to a targeted market segment.

Price Wars

A competitive situation in which retailers repeatedly cut prices in order to undercut each other, often to the detriment of profit margins.

Tacit Agreements

Unspoken, unwritten mutual understandings or arrangements between parties.