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:

Optimal Outcome

A condition or result that is the most favorable or advantageous under the given circumstances.

Recognition-Primed Decision Making

A theory of expert decision making holding that decision makers choose options based on analogy of a given situation with previously encountered situations.

Expected Utility

A theory in economics and decision theory that describes how individuals might choose among risky prospects based on the expected outcomes' utility to them.

MAUT

Multi-Attribute Utility Theory, a decision-making framework that evaluates choices based on multiple criteria.