If a Competitive Firm Is Maximizing Profits by Selling Output

question 74

Multiple Choice

If a competitive firm is maximizing profits by selling output for $2 per unit and paying a factor of production $10, then the marginal revenue product of that factor is:

• A)$2.
• B)$5.
• C)$10.
• D)$20.
• E)cannot tell from the information provided.

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Definitions:

Taxable Income

The amount of an individual's or entity's income used to determine how much tax is owed to the government.

Standard Deduction

A portion of income that is not subject to tax and can be used to reduce a taxpayer's taxable income.

Joint Return

A tax return filed jointly by a married couple, combining their incomes, exemptions, and deductions.

Taxable Income

The portion of an individual's or corporation's income used as the basis for calculating the amount of tax owed to the government.