Table 10.2 -Refer to Table 10.2. If the Price of Output Is

question 51

Multiple Choice

Table 10.2
-Refer to Table 10.2. If the price of output is $2 per unit and the wage rate is $40, how many workers should be hired?

• A) six workers
• B) five workers
• C) four workers
• D) three workers

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Definitions:

Marginal Product

The surplus production derived from enhancing a specific input by a single unit, keeping all else equal.

Δq/ΔL

The change in quantity produced per unit change in labor, often related to the marginal product of labor.

Marginal Product

The additional output generated by employing one more unit of a particular input, holding other inputs constant.

Average Product

The amount of output produced on average by each unit of a variable input, such as labor, in the production process.