A Competitive Firm Sells Its Output for $25 Per Unit

question 67

Multiple Choice

A competitive firm sells its output for $25 per unit.The marginal product of the 10th worker is 10 units of output per day;the marginal product of the 11th worker is 8 units of output per day.The firm pays its workers a wage of $160 per day.

• A) For the 10th worker,the value of the marginal product of labor is $50.
• B) For the 10th worker,the value of the marginal product of labor is $250.
• C) For the 10th worker,the value of the marginal product of labor is $300.
• D) For the 10th worker,the value of the marginal product of labor is $1,500.

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Definitions:

Electricity

A form of energy resulting from the existence of charged particles which can be statically held or dynamically flowing through conductors.

Coal

A combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams, used as a fossil fuel for producing electricity and heat.

Global Coal Supplies

The total quantity of coal available for use worldwide, encompassing both proven reserves and resources yet to be discovered.

Depleted

A condition where a significant amount of a resource or substance has been consumed or removed, often leading to scarcity.