Refer to the Following:
the Table Below Shows a Competitive $\begin{array}{ll} \text {Units of Labor }& \text {Units of Output }\\3 & 370 \\4 & 490 \\5 & 570 \\6 & 600 \\7 & 620\end{array}$

question 23

Multiple Choice

Refer to the following:
The table below shows a competitive firm's short-run production function. Labor is the firm's only variable input, and market price for the firm's product is $2 per unit.
$\begin{array}{ll} \text {Units of Labor }& \text {Units of Output }\\3 & 370 \\4 & 490 \\5 & 570 \\6 & 600 \\7 & 620\end{array}$
-If the wage rate is $200, the firm should

• A) shut down because average revenue product is $200, which is less than marginal revenue product.
• B) shut down because average revenue product is $228, which is greater than the wage rate.
• C) produce because average revenue product is $200, which is less than marginal revenue product.
• D) produce because average revenue product is $245, which is greater than the wage rate.

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Definitions:

Genetic Disease

A disorder or condition caused by abnormalities in an individual's DNA, often inherited from one or both parents.

Amino Acid

An organic compound containing an amino group (—NH2) and a carboxyl group (—COOH); may be joined by peptide bonds to form a polypeptide chain.

Transmembrane Conductance

The movement of ions or molecules across a cell membrane through protein channels, influencing cellular processes and homeostasis.

Thymine

A nitrogenous pyrimidine base found in DNA.