Table 12-2 -Refer to Table 12-2. This Table Describes the Number of Describes

question 140

Multiple Choice

Table 12-2

-Refer to Table 12-2. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. If the firm is maximizing the marginal product of labor, what is the firm's marginal revenue product?

• A) 140 baseballs.
• B) $300.
• C) $400.
• D) $700.

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Definitions:

Double Its Inputs

The act of a firm increasing the amount of inputs used in production, such as labor and capital, by two times.

Level of Output

The quantity of goods or services produced by a firm or economy during a specific time period.

Cobb-Douglas

A mathematical function used in economic models to represent the relationship between two or more inputs and the resulting level of output.

Production Function

A mathematical representation of the relationship between inputs used in production and the output generated from those inputs.