Table 5.2 -Refer to Table 5.2, Which Gives a Firm's Production Function

question 130

Multiple Choice

Table 5.2
-Refer to Table 5.2, which gives a firm's production function. Assume that all non-labor inputs are fixed. The marginal product of the fourth worker is

• A) 0 units.
• B) 10 units.
• C) 25 units.
• D) 30 units.

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Definitions:

Price

The cash amount projected, called for, or allocated in settlement for a product.

Quantity

The amount or number of a material or immaterial good that is considered separately.

Consumer Surplus

The gap between the total sum consumers can and will pay for a good or service versus what they actually spend.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, measured above the supply curve.