Table 18-9 The Following Table Shows the Production Function for a Particular

question 536

Multiple Choice

Table 18-9
The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis.
-Refer to Table 18-9. Suppose this firm charges a price of $5 per unit of output and pays workers a wage equal to $160 per day. What is the value of the marginal product of labor for the second worker?

• A)$300
• B)$650
• C)$9,600
• D)$20,800

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Definitions:

Promissory Note

A financial document in which one party promises to pay another party a definite sum of money at a specified future date or on demand.

Missing Value

A data point that is not recorded or is absent in a data set or analysis.

Simple Interest

Interest calculated on the principal amount of a loan or deposit without compounding.

Daily Closing Balance

The total amount in an account at the end of each day, taking into account all transactions and activities of that day.