Decent Donuts -Using the Table Above, What Is the Marginal Product of the Marginal

question 53

Multiple Choice

Decent Donuts

-Using the table above, what is the marginal product of the 5th worker hired at Decent Donuts?

• A) 86 dozen donuts per day
• B) 22 dozen donuts per day
• C) 17.2 dozen donuts per day
• D) 64 dozen donuts per day

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Definitions:

MC of Production

The additional cost incurred by producing one more unit of a good or service, often denoted as marginal cost.

Long-Run Industry

An economic concept where all inputs and operations are adjustable, allowing for new firms to enter or exit the market, affecting supply and price levels.

Profit-Maximization

Profit-maximization is the process by which a firm determines the price and output level that returns the greatest profit, focusing on key variables like sales and costs.

Economic Profit

The gap between the total income and the sum of explicit and implicit costs of a business.