Figure 18-2 The Figure Below Shows the Production Function for a Particular

question 415

Multiple Choice

Figure 18-2
The figure below shows the production function for a particular firm.
-Refer to Figure 18-2. Suppose the firm pays a wage equal to $160 per unit of labor and sells its output at $10 per unit. What is the value of the marginal product of labor for the fourth worker?

• A)10 units
• B)$100
• C)$1,000
• D)$1,600

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Definitions:

Externalities

Economic side effects or by-products that affect uninvolved third parties; can be negative (like pollution) or positive (like education benefits), and are not reflected in market prices.

Property Rights

Legal rights to own, use, and dispose of assets or resources, playing a critical role in determining the allocation and use of resources in an economy.

Enforced

Imposed by authority or law, ensuring compliance or obedience through the application of rules or regulations.

Radioactive Waste

Waste material containing radioactive substances which can remain hazardous to human health and the environment for thousands of years.