Suppose Two Workers Can Harvest $46 Worth of Apples Per

question 136

Multiple Choice

Suppose two workers can harvest $46 worth of apples per day and three workers can harvest $60 worth. On the basis of this information, we can say that the

• A)marginal product of each of the first two workers is 23.
• B)marginal revenue product of each of the first two workers is $23.
• C)marginal revenue product of the third worker is $14.
• D)third worker should not be hired.

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Definitions:

Capital Structure

The mix of different types of debt and equity a company uses to finance its operations.

New Common Stock

Shares issued by a company for the first time to the public, typically through an Initial Public Offering (IPO) or additional issuance.

Flotation Costs

Expenses incurred by a company in issuing new securities, including underwriting, legal, registration, and printing fees.

New Equity

Funds raised by a company through the issuance of additional shares of stock, contributing to its equity capital.