Suppose the Miami Dolphins Are Considering Adding Another Backup Quarterback

question 178

Multiple Choice

Suppose the Miami Dolphins are considering adding another backup quarterback to their roster.If the salary the Dolphins would have to pay equals $1,000,000 and the value of marginal product of the new quarterback equals $1,200,000,to maximize their profit the Dolphins should

• A) add the new quarterback.
• B) add two new quarterbacks.
• C) not add the new quarterback.
• D) not add the new quarterback and, in fact, get rid of at least one other backup quarterback.
• E) Not enough information is given to determine if the Dolphins should hire the quarterback.

Describe the effect of technological advancements on the marginal product of labor and corresponding changes in employment.

Understand how the concept of margin applies to economic analysis and decision-making within firms.

Analyze the effects of managerial efficiency improvements on labor demand and marginal revenue product.

Understand the concept of marginal revenue product and its calculation.

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Definitions:

Price Ratio

A measure comparing the relative prices of two goods, determining how many units of one good can be exchanged for a unit of another.

Consumption

The process of utilizing products and services to fulfill necessities and desires.

Budget Equation

A financial formula that equates an individual's or entity's income to their total expenses.

Leisure

Free time spent away from business, work, and domestic chores, often dedicated to relaxation, hobbies, or enjoyment.