If the Marginal Revenue Product of the Fifth Worker Hired

question 83

Multiple Choice

If the marginal revenue product of the fifth worker hired by a firm is $15 and the price of a unit of output is $5 regardless of how much is sold, then the marginal product of the fifth worker is

• A) 15 units of output.
• B) 5 units of output.
• C) 3 units of output.
• D) 45 units of output.
• E) 75 units of output.

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Definitions:

STRIPS

Separate Trading of Registered Interest and Principal of Securities; a form of a bond that separates its interest payments from its principal repayment obligation, enabling investors to hold and trade them separately.

Expectations Theory

A theory related to the term structure of interest rates, suggesting that the long-term interest rates reflect expected future short-term interest rates.

Forward Rate

The agreed-upon exchange rate for a currency, security, or commodity to be delivered and paid for at a future date, used in forward contracts.

Zero-coupon Bonds

Bonds that are issued at a discount to their face value and do not pay interest during their life but are redeemed at full face value at maturity.