If the Marginal Product of the Last Nurse Is Equal

question 9

Multiple Choice

If the marginal product of the last nurse is equal to 1/N.⁵ and the wage/price ratio is equal to 1/2,then the optimal number of nurses is

• A)2
• B)4
• C)8
• D)16

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Definitions:

Replacement Rate

In economics, the ratio of a person's retirement income to their pre-retirement income, often focused on social security benefits.

Populations

Groups of individuals of the same species living and interacting within a specific area.

Total Demand

The entire quantity of a good or service that all consumers in a market are willing and able to purchase at a given price over a specific time period.

Commodity Resources

Natural resources or goods that are considered valuable in their natural form, such as oil, gold, and agricultural products.