A Firm Can Sell Its Output for $40 Per Unit

question 141

Multiple Choice

A firm can sell its output for $40 per unit. When it increases its labour force from 4 workers to 5 workers its output increases from 15 to 17 units. The value of marginal product of the 5th worker is

• A) $340.
• B) $80.
• C) $40.
• D) $680.

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Definitions:

Substituted Contract

An agreement made to replace an existing contract, involving the mutual consent of all parties to change the terms or parties involved.

Incidental Damages

Expenses or costs that arise directly from a breach of contract, beyond the direct damages or losses incurred.

Employment Contract

A legally binding agreement between an employer and an employee that outlines the terms of employment, including duties, responsibilities, compensation, and conditions of work.

Nominal Damages

Small monetary compensation awarded to a plaintiff in a lawsuit when no actual damage was suffered or when the plaintiff is unable to prove actual losses.