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

question 69

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 revenue product of the second worker hired is

• A) $4 per hour.
• B) $6 per hour.
• C) $24 per hour.
• D) $40 per hour.

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Definitions:

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time.

Cash Flows

The total amounts of money being transferred into and out of a business, particularly in terms of operational, investing, and financing activities.

Financial Statement

Consolidated documents that present the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial position at a specific point in time, listing assets, liabilities, and shareholders' equity.