A Competitive Firm Sells Its Output for $25 Per Unit

question 74

Multiple Choice

A competitive firm sells its output for $25 per unit.The marginal product of the 10th worker is 10 units of output per day; the marginal product of the 11th worker is 8 units of output per day.The firm pays its workers a wage of $160 per day.For the 10th worker,the value of the marginal product of labor is

• A) $50.
• B) $250.
• C) $300.
• D) $1,500.

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Definitions:

Businesses

Organizations engaged in commercial, industrial, or professional activities aimed at generating profits.

Distribution Channels

Paths or routes through which goods and services flow from the producer to the consumer or end-user.

Primary Types

The principal or most important categories or classes within a broader group.

Market Share

The percentage of total sales or revenue generated by a company or product in a particular market compared to its competitors.