Assume That the Product Price Is $4 Per Unit and That

question 74

Multiple Choice

Assume that the product price is $4 per unit and that the hourly wage for workers is $12. Neither price nor wage changes with output. In Table 30.1, the marginal physical product of the third worker hired is

• A) 15 units per hour.
• B) 4 units per hour.
• C) 3 units per hour.
• D) 5 units per hour.

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Definitions:

S-corporation

A special type of corporation in the U.S. that allows profits, and some losses, to be passed directly to owners’ personal income without being subject to corporate tax rates.

Double Taxation

The levying of tax by two or more jurisdictions on the same declared income, asset, or financial transaction.

Financial Theory

The study of how individuals and corporations make investment decisions, and how these decisions affect financial markets and the overall economy.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.