A Farmer Who Has Fixed Amounts of Land and Capital

question 39

Multiple Choice

A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired, 32 when two workers are hired, 37 when three are hired, and 40 when four are hired. The farmer's product sells for $3 per unit, and the wage rate is $13 per worker. The marginal revenue product of the second worker is

• A)$8
• B)$15
• C)$9
• D)$24

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Definitions:

Nth Partial Sum

The sum of the first n terms of a sequence, used to determine the cumulative value of a series up to a specified number of terms.

Geometric Sequence

An ordered list of numbers where, starting with the second term, each entry is the result of multiplying the one before it by a consistent, non-zero factor termed the common ratio.

Common Ratio

The constant factor between consecutive terms of a geometric sequence.

Fifteen Minute Intervals

Segments of time each lasting fifteen minutes, often used in scheduling or time management.