(Figure: Production Function Data 0) in the Table, What Is

question 23

Multiple Choice

(Figure: Production Function Data 0) In the table, what is the MPP of the second unit of labor?
$\begin{array}{|l|l|}\hline \text { Labor (L) } & \text { Total Product (TP) } \\\hline 0 & 0 \\\hline 1 & 85 \\\hline 2 & 150 \\\hline 3 & 200 \\\hline 4 & 240 \\\hline\end{array}$

• A) 50
• B) 65
• C) 150
• D) 215

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Definitions:

Utility Maximization

A theory in economics asserting that individuals aim to achieve the highest level of satisfaction or utility through their choices, given their resources.

Limited Budget

A financial constraint that limits the amount of money available for spending or investing.

Marginal Utilities

refers to the additional satisfaction or utility gained by consuming one more unit of a good or service.

Money Income

Money income includes the total earnings received by an individual or household in the form of wages, salaries, benefits, and returns on investments over a period.