When a Firm Employs 1 Unit of Factor X It

question 79

Multiple Choice

When a firm employs 1 unit of factor X it produces 28 units of output and when it employs 2 units of factor X it produces 57 units of output. It follows that marginal revenue product of the second unit of factor X is

• A)$22.00.
• B)$29.00.
• C)$0.53.
• D)$114.
• E)There is not enough information to answer the question.

---

Definitions:

Supply

The total amount of a product or service available for purchase by consumers.

Wages

Payments made to workers for their services, typically calculated on an hourly, daily, or piecework basis.

Taxes

Compulsory contributions to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.

Farming Business

The operation of cultivating land, raising crops, and sometimes raising livestock, for the purpose of producing food and other agricultural products for consumption and sale.