If One Worker Can Pick $30 Worth of Grapes and Two

question 42

Multiple Choice

If one worker can pick $30 worth of grapes and two workers together can pick $70 worth of grapes, the

• A)marginal revenue product of each worker is $35.
• B)marginal revenue product of the first worker is $40.
• C)marginal revenue product of the second worker is $40.
• D)data given are insufficient to determine the marginal revenue product of either worker.

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Definitions:

Surrounding Maturity

This term appears to be less commonly used or specific; however, in context, it could refer to factors or conditions existing or occurring around the time a financial instrument reaches its maturity.

Convexity

An indicator of how the bond price's sensitivity to interest rate changes varies with the bond's yield, reflecting adjustments in the bond's duration.

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument.

Duration Mismatch

The disparity between the sensitivity of asset prices and liability values to changes in interest rates, affecting firms and financial institutions' balance sheets.