Table 18-7
the Table Displays Data for a Small, Competitive

question 28

Multiple Choice

Table 18-7
The table displays data for a small, competitive, profit-maximizing firm that produces and sells envelopes. Assume that labor is the only input that varies for the firm.
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$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Labor } \\\text { (Number of workers) }\end{array} & \begin{array} { c } \text { Marginal Product of Labor } \\\text { (Boxes of envelopes per week) }\end{array} & \begin{array} { c } \text { Wage } \\\text { (Dollars per } \\\text { worker per week) }\end{array} \\\hline 0 & & \\\hline 1 & 133 & 393 \\\hline 2 & 111 & 393 \\\hline 3 & 93 & 393 \\\hline 4 & 83 & 393 \\\hline 5 & 75 & 393 \\\hline\end{array}$$ ​
-Refer to Table 18-7. Suppose the firm sells each box of envelopes that it produces for $5. What is the marginal profit of the fourth worker?

• A)$18
• B)$22
• C)-$18
• D)$415

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Definitions:

Lender Of Last Resort

The role typically assumed by a central bank to provide funds to financial institutions in distress, to prevent systemic failures.

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, regulation of banks, and stability of the financial system.

Financial Collapse

Refers to a sudden and severe downturn in the financial stability of an economy, institution, or market, often leading to a crisis.

Federal Reserve System

The primary financial institution in the United States tasked with managing monetary policy, overseeing financial organizations, and ensuring the financial system remains stable.