Ten Cases of Spring Water Are Sold for $6 Each

question 2

Multiple Choice

Ten cases of spring water are sold for $6 each, and the marginal product of the last unit of labor is 5. If the price of a case increases from $6 to $8, then the marginal revenue product of the last unit of labor would

• A) decrease by $10.
• B) increase by $40.
• C) decrease by $30.
• D) increase by $10.
• E) not change.

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Definitions:

Compensation

Payment or reward given for services rendered, loss experienced, or damages incurred.

Battery

A civil wrong that occurs when one person intentionally and voluntarily brings about a non-consented harmful or offensive contact with a person or something closely associated with him or her. Battery requires an actual contact.

Consent

A voluntary agreement to another's proposal or to engage in a particular activity.

Duty Of Care

A legal obligation requiring individuals to exercise a standard of reasonable care while performing acts that could foreseeably harm others.