The Table Gives Marginal Product Data for Resources a and B

question 48

Multiple Choice

The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Assume that the prices of a and b are $15 and $20, respectively. To maximize profits, what combination of a and b should the employer hire?

• A)3 of a and 5 of b
• B)5 of a and 7 of b
• C)7 of a and 7 of b
• D)6 of a and 2 of b

---

Definitions:

Central Limit Theorem

A statistical theory that states that given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples from the same population will be approximately equal to the mean of the population.

Sampling Distribution

The distribution of a statistic (like the mean) that would result from taking a large number of samples from a population.

Sample Size

The number of observations or data points in a sample used to estimate characteristics of a population.

Population Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of values in a population.