Intel Hired a Consultant Who Found That the Value of Marginal

question 255

Multiple Choice

Intel hired a consultant who found that the value of marginal product of Intel's workers decreased as more workers were hired. Suppose Intel is a monopolistically competitive firm. Then the value of marginal product decreases because the I. workers' marginal product of labor decreased as more workers were hired.
II) marginal revenue of Intel's chips decreased as more chips were sold.

• A) I only
• B) II only
• C) Both I and II
• D) Neither I nor II

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Definitions:

Merger

A contractual and statutory process in which one corporation (the surviving corporation) acquires all of the assets and liabilities of another corporation.

Appraisal Rights

The rights of shareholders to demand the payment of a fair valuation of their shares in the event of certain corporate actions, like mergers or consolidations, that they find unsatisfactory.

Short-Form Mergers

A streamlined merger process available when a parent company merges with a subsidiary of which it owns a significant majority.

Consolidation

The act of combining multiple entities, assets, or processes into a single, more effective and efficient structure.