Consider the Following Table for a Firm

question 19

Multiple Choice

Consider the following table for a firm.The first column shows the number of units of a variable factor of production employed by the firm.
TABLE 13-2
-Refer to Table 13-2.Suppose this firm is a perfect competitor and faces a given price of the product equal to $10 per unit.The marginal revenue product of the 3rd unit of the factor is

• A)$30.
• B)$100.
• C)$110.
• D)$1000.
• E)$1100.

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Definitions:

Cost

The amount of money that needs to be spent to purchase, produce, or maintain something.

Benefit

An advantage or profit gained from something, often referring to employment perks beyond salary, such as health insurance.

Factory Overhead Cost

Expenses associated with operating a factory that can't be directly linked to a specific product, including costs like utilities and maintenance.

Conversion Cost

The combined cost of direct labor and manufacturing overheads required to convert raw materials into finished products.