Suppose a Firm Increases the Quantity of Labour Employed from 5

question 63

Multiple Choice

Suppose a firm increases the quantity of labour employed from 5 to 6 workers,and as a result,the firm's total output increases from 100 units to 400 units.The marginal product of the sixth worker is

• A)50 units.
• B)100 units.
• C)200 units.
• D)300 units.
• E)66.67 units.

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Definitions:

Total Investment

The sum of expenditures on capital assets, plus the change in inventory levels, within an economy over a period of time.

Market Rate

The prevailing price or interest rate available in the marketplace for goods, services, or financial assets.

Interest

Interest is the cost of borrowing money, typically expressed as a percent of the amount borrowed, paid by the borrower to the lender.

Interest Rate

The percentage of a loan charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.