Suppose the MC Hammer Company Produces Hammers What Is the Value of the Marginal Product of the Hammers

question 29

Multiple Choice

Suppose the MC Hammer Company produces hammers. The number of hammers it can produce each hour depends on the number of workers it hires, as shown in the accompanying table. In addition, each hammer can be sold for $2 more than the cost of the materials needed to produce it. $$\begin{array} { | c | c | } \hline \text { Number of warkers per hour } & \text { Number of humers per haur } \\\hline 0 & 0 \\\hline 1 & 20 \\\hline 2 & 36 \\\hline 3 & 48 \\\hline 4 & 56 \\\hline 5 & 60 \\\hline\end{array}$$  
What is the value of the marginal product of the 2nd worker hired each hour?

• A)$36
• B)$72
• C)$16
• D)$32

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Definitions:

Trade Surplus

Occurs when a country's exports exceed its imports during a specific time period, indicating a positive balance of trade.

Exports

Goods or services sent from one country to another for sale or trade.

Imports

Goods or services brought into one country from another for the purpose of sale or trade.

Exchange Rate Risk

The potential for loss due to fluctuations in the exchange rate between two currencies in international finance.