Scenario 1: the Following Is a Hypothetical Short-Run Production Function

question 59

Multiple Choice

Scenario 1: The following is a hypothetical short-run production function:

-Refer to Scenario 1.What is the marginal product of the third hour of labor?

• A)60
• B)80
• C)100
• D)240

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Definitions:

Production Possibilities Frontier

The production possibilities frontier (PPF) is a curve depicting all maximum output possibilities for two or more goods, given a set of inputs.

Opportunity Cost

The value of the next best alternative that is forgone as a result of making a particular choice.

Inputs

In economics, inputs are the resources used in the production of goods and services, such as labor, materials, and capital.

Trade-off

A situation where making a decision to gain one thing requires sacrificing another.