Exhibit 7-5 Workers and Output Data

question 27

Multiple Choice

Exhibit 7-5 Workers and output data

In Exhibit 7-5, the marginal product of the second worker is:

• A) 8.
• B) 10.
• C) 12.
• D) 20.

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Definitions:

Perfectly Inelastic

A situation where the demand for a product does not change in response to a change in price.

Excise Tax

A tax levied on specific goods, services, or transactions, often based on quantity purchased rather than value, such as taxes on cigarettes, alcohol, and fuel.

Excise Tax

A tax imposed on specific goods or services at purchase such as gasoline, tobacco, and alcohol.

Highly Inelastic

Describes a situation where the demand or supply for a good or service is hardly affected when the price changes.