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

---

Definitions:

Marigold

A genus of annual or perennial, mostly herbaceous plants in the sunflower family, known for their vibrant yellow or orange flowers.

Implicit Cost

The opportunity cost equal to what a firm must give up in order to use resources that it already owns, as opposed to explicit costs that are directly paid.

Future Earnings

Projected income that an entity or individual anticipates receiving over a specified future period, often used in valuation or investment analysis.

Migration

The movement of individuals or groups from one location to another, often in pursuit of better living conditions, job opportunities, or safety.