A Firm Can Sell Its Output for $40 Per Unit

question 88

Multiple Choice

A firm can sell its output for $40 per unit. When it increases its labour force from 4 workers to 5 workers, its output increases from 15 to 17 units. The value of marginal product of the 5th worker is

• A)$80.
• B)$40.
• C)$600.
• D)$680.
• E)$136.

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Definitions:

Situational Analysis

The process of identifying internal and external factors affecting a business’s performance, used to inform strategy development.

Competing Products

Goods or services that are offered in the same market by different companies and serve as alternatives to each other.

Organic Foods Market

A sector of the food industry that deals with products produced via farming practices which aim to promote ecological balance and conserve biodiversity, avoiding most synthetic pesticides and fertilizers.

Market Segment

A distinct group of potential consumers who share similar needs, desires, and characteristics, targeted by businesses for marketing campaigns.