Which of the Following Is True? at a Given Quantity

question 45

Multiple Choice

Which of the following is true? At a given quantity of employment,if the
i.value of marginal product of a high-skill worker is $35 and the value of marginal product of a low-skill worker is $10,the value of marginal product of the skill is $25.
ii.value of marginal product of a high-skill worker is $35 and the value of marginal product of a low-skill worker is $10,the cost of acquiring the skill is $25.
iii.value of marginal product of a skill is $25,then the wage rate must be $25.

• A) i only
• B) ii only
• C) iii only
• D) i and iii
• E) ii and iii

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Definitions:

Opportunity Cost

The financial impact of rejecting the most viable alternative during a decision process.

Highest Valued Use

The use of a resource or good that provides the most benefit or value to its user.

Revenue Derived

Pertains to income generated from specific activities or products, indicating a direct source of a company's revenue.

House Painters

Professionals specializing in applying paint and other finishes to buildings primarily for protection and aesthetic purposes.