The figure below depicts a production function for a firm that produces cookies.
Figure 12-4 
-The Hardboard Construction Company hired Bob at $10 an hour, but its output of doll houses only increased by three units a day. Two weeks later, the company purchased an $8 hammer for Bob and output increased by twelve units. Since the hammer increased the marginal product more than Bob did, and at less cost, Hardboard fired Bob. Is this consistent with the theory of marginal productivity? Why or why not?
Definitions:
Negotiable
Refers to something that can be discussed or altered, such as terms in a contract, or a financial instrument that can be transferred or sold.
Indorsement
A signature placed on an instrument for the purpose of transferring ownership rights in the instrument.
Statute of Limitations
A law that sets the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.
Interest Accrue
The process by which interest is added to the principal sum of a loan or deposit, typically over time.
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