When a Perfectly Competitive Firm (That Sells Its Good for $20

question 33

Multiple Choice

When a perfectly competitive firm (that sells its good for $20 per unit) hires 1 unit of factor X it produces 70 units of output and when it hires 2 units of factor X it produces 85 units of output. Marginal revenue product of the second unit of factor X is equal to

• A)$30.
• B)$530.
• C)$265.
• D)$300.
• E)none of the above

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Definitions:

Psychological Research

The scientific study of the human mind, behavior, and mental processes through various research methodologies and experiments.

Anecdotal Evidence

Informal evidence based on personal stories or experiences, not considered scientifically rigorous.

Evidence-Based

Practices or decisions that are grounded on the best available research and evidence, often used in healthcare and policymaking.

Critical Thinking

The intent to critically investigate and judge an issue for the purpose of arriving at a verdict.