The Table Has the Marginal Products for Workers at Bart's

question 168

Multiple Choice

The table has the marginal products for workers at Bart's Bats, a baseball bat factory.
-Using the above table,suppose the price of a bat is $3.If the wage rate for a worker in a baseball bat manufacturing plant is $18 an hour,then the firm will hire ________ workers; if the wage rate falls to $12 an hour,then the firm will hire ________.

• A) 1; 2
• B) 2; 4
• C) 3; 3
• D) 5; 4
• E) 3; 5

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Definitions:

Proprietors' Income

The income earned by the owners of unincorporated businesses.

Capitalist Income

The earnings from capital investment, including profits, interest, and dividends, attributed to owners in a capitalist economy.

Unionism

The principles, practices, or the system of forming and belonging to a labor union to protect and further the rights and interests of workers.

Normal Profit

The payment made by a firm to obtain and retain entrepreneurial ability; the minimum income that entrepreneurial ability must receive to induce entrepreneurs to provide their entrepreneurial ability to a firm; the level of accounting profit at which a firm generates an economic profit of zero after paying for entrepreneurial ability.