XYZ Company Is Currently Experiencing a Backlog at Its Loading

question 203

Multiple Choice

XYZ Company is currently experiencing a backlog at its loading dock. A manager figures that if she were to hire an extra worker for $100 per day, then sales volumes would increase by $400, due to the removal of the congestion on the dock. The worker's marginal revenue product is

• A) $100.
• B) $300.
• C) $400.
• D) $500.

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Definitions:

Wage Rate

The amount of compensation or payment received by an employee per unit of time or piece of work completed.

Pizza Makers

Individuals or machines specifically tasked with preparing and cooking pizzas.

Increase in Supply

Occurs when there is a rise in the quantity of a good or service available in the market, typically resulting from lower production costs or an improvement in technology.

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity supplied.