Table 18-B Consider the Following Daily Production Data for MadeFromScratch, Inc. MadeFromScratch

question 321

Multiple Choice

Table 18-B
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day.
-Refer to Table 18-11. What is the sixth worker's marginal product of labor?

• A)100 cupcakes
• B)120 cupcakes
• C)140 cupcakes
• D)160 cupcakes

---

Definitions:

Optimum Efficiency

The state in which resources are allocated in the most efficient manner possible, maximizing outputs while minimizing wastes and costs.

Perfect Competitor

An idealized market structure in which many firms produce identical products, entry and exit are easy, and all participants have perfect information.

Long Run

A period in economics in which all factors of production and costs are variable, allowing for full adjustment to change.

Marginal Cost

The increase in total cost that arises from an extra unit of production.