Table 18-6
Consider the Following Daily Production Data for MadeFromScratch

question 134

Multiple Choice

Table 18-6
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day.
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$$\begin{array} { | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Labor } \\\text { (Number of } \\\text { workers) }\end{array} & \begin{array} { c } \text { Output } \\\text { (Cupcakes per } \\\text { day) }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Product } \\\text { of Labor } \\\text { (Cupcakes per } \\\text { day) }\end{array} & \begin{array} { c } \text { Value of the } \\\text { Marginal } \\\text { Product of Labor } \\\text { (Cupcakes) }\end{array} & \begin{array} { c } \text { Wage } \\\text { (Dollarsper } \\\text { worker per } \\\text { day) }\end{array} & \begin{array} { c } \text { Margin } \\\text { Profit } \\\text { (Dollar }\end{array} \\\hline 0 & 0 & & & 325 & \\\hline 1 & 200 & & & 325 & \\\hline 2 & 350 & & & 325 & \\\hline 3 & 475 & & & 325 & \\\hline 4 & 575 & & &325 & \\\hline\end{array}$$ ​
-Refer to Table 18-6. What is the value of the marginal product of the first worker?

• A)$200
• B)$400
• C)$500
• D)$700

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Definitions:

Dove Ice Cream

A brand of ice cream produced by Dove, known for its smooth texture and quality chocolate.

Forbidden

Prohibited or not allowed by law, rules, or customs.

Reactance

A psychological response where individuals act in opposition to external pressures or constraints to maintain their freedom of choice.

Loss of Freedom

The experience of having one's autonomy, choices, or rights restricted or removed, often leading to feelings of constraint or oppression.