-Suppose the Adelaide Crows Are Considering Adding Another Backup Ruckman

question 2

Multiple Choice

-Suppose the Adelaide Crows are considering adding another backup ruckman to their list of players. If the salary the Crows would have to pay equals $1,000,000 and the value of marginal product of the new ruckman equals $1,200,000, to maximise their profit the Crows should

• A) not add the new ruckman and, de-list at least one other backup ruckman.
• B) not add the new ruckman.
• C) add the new ruckman.
• D) add two new ruckmen.
• E) Not enough information is given to determine if the Crows should hire the ruckman.

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Definitions:

Output Effect

The impact on the total production/output of a firm or economy as a result of changing price levels, often referring to the relationship between price changes and quantity supplied.

Price Effect

The impact on consumer demand and supply resulting from changes in the price of goods or services.

Profit-Maximizing Decision

A profit-maximizing decision is a strategic choice made by businesses to ensure the greatest financial return against costs, optimizing profitability.

Oligopoly Market

A market structure characterized by a small number of large firms dominating the industry, often leading to limited competition, and where the actions of one firm can significantly impact the others.