Given the Table for a Competitive Firm That Is Maximizing

question 38

Multiple Choice

Given the table for a competitive firm that is maximizing profits, if the marginal revenue product of the last worker hired is $300 and three workers are employed per day, the price of a unit of output must be

• A)60.
• B)15.
• C)10.
• D)20.

---

Definitions:

Poison Pill

A defensive strategy employed by a company's management to prevent or deter hostile takeovers by making the company less attractive to the potential acquirer.

Flip-over Provision

A defensive strategy in a company's charter to deter hostile takeovers, allowing shareholders to buy shares at a discount if a single buyer acquires a significant portion of the company.

Share Rights Plan

A defense strategy used by corporations to deter hostile takeovers, allowing existing shareholders the right to purchase additional shares at a discount.

Diversification

The strategy of spreading investments among various financial instruments or sectors to reduce risk.