Let L Represent the Number of Workers Hired by a Firm

question 39

Multiple Choice

Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (L=6,Q=147) and (L=7,Q=184) . The marginal product of the seventh worker is

• A)25 units of output.
• B)27 units of output.
• C)37 units of output.
• D)184 units of output.

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Definitions:

Total Utility

The overall satisfaction or happiness a consumer receives from consuming a certain amount of goods or services.

Income

The amount of money or value received, often measured annually, from work, investments, business, etc., used to support oneself or a family.

Perfect Substitutes

Goods for which the indifference curves are straight lines; the marginal rate of substitution of one good in place of another good is constant, regardless of how much of each an individual consumes.

Consumer Equilibrium

A state where an individual consumer has optimized their utility, given their budget constraints, choosing the best possible goods or service mix.