Ajax Has Just Discovered That the Marginal Revenue Product Generated

question 161

Multiple Choice

Ajax has just discovered that the marginal revenue product generated by the last worker hired was $125 while the marginal factor cost was $85. What should Ajax do?

• A) Leave the level of production unchanged.
• B) Increase the amount produced.
• C) Reduce the amount produced.
• D) Collect more information before making a decision.

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Definitions:

Semicircular Ducts

Fluid-filled passages in the inner ear that are sensitive to rotational movements of the head, aiding in the sense of balance.

Equilibrium

A state of balance or stability within a system, particularly in reference to bodily functions or chemical reactions.

Vestibule

An entrance area or space, such as the central cavity of the labyrinth of the ear, which connects to the cochlea and semicircular canals.

Bony Labyrinth

A complex system of channels and cavities within the temporal bone of the skull, important for hearing and balance.