Ajax Has Just Discovered That the Marginal Revenue Product Generated

question 68

Multiple Choice

Ajax has just discovered that the marginal revenue product generated by the last worker hired was $75 while the marginal factor cost was $95. What should Ajax do?

• A) Leave the level of production unchanged.
• B) Increase the amount produced.
• C) Reduce the amount produced.
• D) Collect more information before making a decision.

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Definitions:

Heads

In the context of a coin toss, it represents one of the two possible outcomes, often used to describe a 50/50 chance event.

Unbiased Coin

A term referring to a coin that has an equal likelihood of landing on heads or tails when flipped.

Tosses

In a statistical context, refers to the act of flipping a coin to produce random outcomes of heads or tails.

Binomial Distribution

A probability distribution that summarizes the likelihood of a variable to take one of two independent values under a given set of parameters.