According to the Equation Given, a Toy Manufacturer Calculates Its

question 22

Multiple Choice

According to the equation given, a toy manufacturer calculates its daily profit P (in dollars) based on the number of workers n it employs. Calculate the marginal product at an employment level of 100 workers.

• A)$39,960
• B)$36,000
• C)$3,999,960
• D)$320
• E)$440

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Definitions:

Held Up

Delayed or stopped by something or someone, causing a pause in progress or movement.

Average Variable Costs

The total variable costs (costs that change with output level) divided by the quantity of output produced.

Average Costs

The total cost of production divided by the number of goods produced, a measure of cost efficiency.

Shutting-Down

A short-term decision by a firm to cease operations while it still has the option to resume in the future, often due to unfavorable market conditions.