The Figure Above Shows a Firm's VMP Curve

question 75

Multiple Choice

The figure above shows a firm's VMP curve.
-Suppose that a new technology doubles the marginal product of the workers and the price of the product does not change.As a result,the value of marginal product of the second worker

• A) remains $12.
• B) becomes $6.
• C) becomes $24.
• D) becomes $30.
• E) More information about the supply of labor is needed to answer the question.

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Definitions:

Liabilities

Financial obligations or debts that a company or individual owes to others.

GAAP

Generally Accepted Accounting Principles, a collection of commonly followed accounting rules and standards for financial reporting.

Accounting and Financial Reporting

The process of recording, summarizing, and reporting the financial transactions of a business to provide an accurate picture of its financial position and performance.

Liability

Anything owed to creditors—the claims of a company’s creditors.