Use the Following to Answer Questions 11-16

question 18

Multiple Choice

Use the following to answer questions 11-16:

-If hiring the 7th worker increases total product by 5 units and the price of each unit is $2,

• A)the firm should not hire the 7th worker as MB<MC
• B)marginal revenue equals $2
• C)the firm should hire the 7th worker as MB>MC
• D)the firm should not hire the 7th worker as MB<TC

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Definitions:

Budget Constraint

A budget constraint outlines the combinations of goods and services that a consumer can purchase given their income and the prices of those goods and services.

DVDs

Digital Versatile Discs, a type of optical storage media used for video, audio, and data storage, now surpassed by digital streaming and download technologies.

CDs

Compact Discs, a digital optical disc data storage format used for storing audio, video, and data.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford given their income and the prices of goods.