The Table Gives Marginal Product Data for Resources a and B

question 274

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. Assuming the prices of resources a and b are $5 and $8 respectively, when the firm hires the profit-maximizing combination of resources, its economic profit will be

• A)$76.
• B)$138.
• C)$145.
• D)$170.

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Definitions:

Empirical Rule

A statistical principle that asserts in a normal distribution, almost all of the data is contained within three standard deviations from the mean.

Standard Deviations

Standard deviations are a measure of the amount of variation or dispersion in a set of values, indicating how much the values in a dataset deviate from the mean on average.

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Standard Deviation

The standard deviation is a measure of the amount of variation or dispersion of a set of values.