Jayden Runs a Company That Sells Its Product for $250

question 74

Multiple Choice

Jayden runs a company that sells its product for $250 each. When he employs 10 workers, they can sell 60 products per week, while only 54 products are sold when 9 workers are employed. What is the weekly marginal revenue product of the tenth worker?

• A) $250
• B) $1,250
• C) $1,500
• D) $15,000

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Definitions:

Fixed Input

Inputs used in production that cannot be varied in the short term, such as buildings or machinery.

Plant Size

The physical capacity or dimensions of a manufacturing facility.

Implicit Costs

They represent the opportunity costs of using resources that a company already owns, rather than the out-of-pocket expenses.

Economic Costs

The total cost of production, including both explicit costs like wages and materials and implicit costs such as opportunity costs.