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Suppose One Worker in New Ralph Island Can Produce 40

question 73

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Suppose one worker in New Ralph Island can produce 40 walking sticks or 10 boomerangs each hour.The opportunity cost of producing 1 walking stick is _____.


Definitions:

Factor's Price

The payment for the use of a factor of production, such as wages for labor, rent for land, or interest on capital.

Value of the Marginal Product

The additional revenue generated from employing one more unit of a factor of production.

Total Revenue

The sum of income a company earns from selling products or providing services before deducting any costs.

Value of the Marginal Product

The additional revenue a firm receives from hiring one more unit of input, like labor, in the production process.

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