Suppose That in a Computer Factory, If There Is 1

question 357

Multiple Choice

Suppose that in a computer factory, if there is 1 worker, 80 computers are produced per week. If there are 2 workers, 150 computers are produced per week. If there are 3 workers, 210 computers are produced per week. Given this information and the fact that the firm receives $200 per computer, the marginal revenue product of the third worker is

• A) $4,200.
• B) $12,000.
• C) $10,000.
• D) $14,000.

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Definitions:

Contract

A lawful agreement among two or more parties that has legal authority and enforceability.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for wrongful actions taken by an employee or agent if such actions occur in the course of their employment or agency.

Unauthorized Acts

Unauthorized Acts are actions taken by an individual or entity that are not permitted or sanctioned by law, contract, or authority.

Agents

Individuals or entities authorized to act on behalf of another (the principal) in dealings with third parties.