The Table Below Shows the Total Production for Varying Numbers

question 67

Multiple Choice

The table below shows the total production for varying numbers of hours worked producing yo- yos.The firm sells its product and hires its workers in competitive markets. $$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Hours Worked }\end{array} & \begin{array} { c } \text { Number of } \\\text { Yo-Yos } \\\text { Produced }\end{array} & \begin{array} { c } \text { Wage Rate } \\\text { per Hour } ( \$ ) \end{array} & \begin{array} { c } \text { Price of Yo- Yos } \\( \$ ) \end{array} \\\hline 10 & 60 & 10 & 5 \\\hline 11 & 70 & 10 & 5 \\\hline 12 & 78 & 10 & 5 \\\hline 13 & 84 & 10 & 5 \\\hline 14 & 88 & 10 & 5 \\\hline 15 & 90 & 10 & 5 \\\hline\end{array}$$ TABLE 13- 4
-Refer to Table 13- 4.If plotted on a graph,the marginal revenue product curve for the "number of hours worked" would be the same as

• A)the firm's marginal product curve,and would be downward sloping and concave to the origin.
• B)the firm's marginal revenue curve,and would be horizontal at $5 because this firm is operating in a competitive labour market.
• C)the firm's demand curve for hours worked,and would be downward sloping and linear.
• D)the firm's demand curve for yo- yos,and would be downward sloping and linear.
• E)the firm's marginal product curve,and would be downward sloping and convex to the origin.

---

Definitions:

Binomial Model

An option-valuation model predicated on the assumption that stock prices can move to only two values over any short time period.

Exercise Price

The specified price at which the option holder can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Binomial Model

A mathematical model for pricing options that uses a discrete-time framework to trace the evolution of option prices over time.

Risk Free Interest Rate

The theoretical rate of return on an investment with zero risk, typically represented by the yield on government bonds.