The Table Below Shows the Total Production for Varying Numbers

question 56

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
-Consider labour that is hired for $18 per hour.If the last hour of labour hired produces 8 units of output which sells for $10 per unit,that labour- hour's marginal revenue product is

• A)$1.20.
• B)$144.
• C)$80.
• D)$4.44.
• E)$64.

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Definitions:

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, not based on costs but on what the seller believes each customer can afford or is willing to pay.

Tying

A marketing strategy where a company requires consumers to buy a secondary product or service together with a primary product.

Razors and Razor Blades

A business model where a main product is sold at a low price to increase sales of a complementary product, which is where the profit is made.

Demands Correlation

Refers to the relationship between the demands for different goods or services, indicating how changes in one impact the other.