Assume That Labor Is the Only Variable Input and That

question 84

Multiple Choice

Assume that labor is the only variable input and that an additional input of labor increases total output from 72 to 78 units.If the product sells for $6 per unit in a perfectly competitive market,then the MRPof this additional worker is:

• A)$78
• B)$72
• C)$36
• D)$39
• E)$6

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Definitions:

Distributions

Payments made by a fund, trust, or company to its shareholders or partners, often from profits or interest earned.

Owners

Individuals or entities that hold a property right or equity interest in a business.

Financial Flexibility

The ability of an individual or organization to adapt to financial challenges and take advantage of opportunities, maintaining operation under various financial conditions.

Financial Statement

Formal records of the financial activities and position of a business, person, or other entity, presenting the financial performance over a specific period.