Suppose That the Last Unit of a Factor of Production

question 51

Multiple Choice

Suppose that the last unit of a factor of production employed has a marginal physical product of 12. The factor's price is $8, and the product's competitive market price is $6. This factor's marginal revenue product is

• A) $96.
• B) $72.
• C) $6.
• D) $36.
• E) $48.

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Definitions:

Quarterly Meeting

A scheduled meeting that occurs four times a year, typically to review quarterly performance and plan for future strategies.

Shareholders

Individuals or entities that own shares in a corporation and have potential financial gains or losses based on the company's performance.

Terminated Corporation

A terminated corporation is a company that has gone through the legal process of dissolution and has ceased its operations and its corporate existence.

Liability

A legal responsibility or obligation, often involving financial restitution in the event of causing loss or damage.