Troll Corporation Sells Dolls for $10

question 109

Multiple Choice

Troll Corporation sells dolls for $10.00 each in a market that is perfectly competitive. Increasing the number of workers from 100 to 101 would cause output to rise from 500 to 550 dolls per day. The marginal revenue product for the 101st worker is

• A) $10.00.
• B) $500.
• C) $5,000.
• D) $1,010.

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Definitions:

Intangible Capital

Assets that are not physical in nature, such as intellectual property, brand recognition, and human capital, which can contribute to a company's value.

Inventory

The total amount of goods and materials held in stock by a business, including raw materials, work-in-progress, and finished goods.

Labor Force

The total number of people employed or actively seeking employment in a specified market or economy.

Tangible Capital

Physical assets owned by a firm or individual that are used in the production process, such as machinery, buildings, and equipment.