Answer the Question on the Basis of the Following Output

question 48

Multiple Choice

Answer the question on the basis of the following output data for a firm. Assume that the amounts of all nonlabor resources are fixed. What is the firm's average product when four workers are hired?

• A)21.5 units of output.
• B)43 units of output.
• C)41.25units of output.
• D)28.75units of output.

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Definitions:

Total Revenue

The total amount of money generated by a business from its primary activities of selling goods or services before any expenses are deducted.

Price

The amount of money required to purchase a good or service, often determined by supply and demand dynamics in the market.

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in consumers' income.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression, often indicating proportionality.