In a Given Year, a Production Worker Earns $30,000 for Producing

question 91

Multiple Choice

In a given year, a production worker earns $30,000 for producing 1,500 units. If the firm can motivate this worker to increase productivity to 2,000 units, the per unit cost of production would be _____.

• A) 20
• B) 15
• C) 5
• D) 6.67

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Definitions:

Pareto Optimal

A distribution condition in which making any person's situation better is impossible without causing harm to someone else.

Private Goods Consumption

Involves the use of goods that are excludable and rivalrous, meaning their consumption by one individual prevents another from consuming the same good.

Pareto Optimal

A condition where the distribution of resources cannot be changed without negatively impacting at least one person.

Private Goods Consumption

The act of consuming goods that are excludable and rivalrous in nature, meaning they can only be owned or consumed by one party and consumption by one person prevents consumption by another.