A Competitive, Profit-Maximizing Pays Its Workers a Wage of $294

question 54

Essay

A competitive, profit-maximizing pays its workers a wage of $294 per day. The marginal product of the last worker is 35 units of output. What is the firm's marginal cost of producing its last unit of output?

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Definitions:

Contractual Obligations

Legal duties that arise out of agreements between two or more parties where each has responsibilities to perform as specified in the contract.

Assignment

The transfer of rights, property, or obligations from one party to another.

Delegation

The act of assigning responsibility or authority from one person to another to carry out specific activities.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, albeit without any intention from the contracting parties to benefit the third party.