A Competitive Firm Sells Its Output for $50 Per Unit

question 408

Multiple Choice

A competitive firm sells its output for $50 per unit. Assume that labor is the only input that varies for the firm. 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)$250.
• B)$400.
• C)$500.
• D)$1,280.

---

Definitions:

International Companies

Businesses that operate across multiple countries outside of their original country of establishment.

Product Manufacturing

The process of producing goods from raw materials through various procedures such as assembly or chemical transformation.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness and interdependence of the world's markets and businesses.

Research And Development (R&D)

The process of investigating and creating new products and services or improving existing ones through innovations.