Table 18-B Consider the Following Daily Production Data for MadeFromScratch, Inc. MadeFromScratch

question 386

Multiple Choice

Table 18-B
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day.
-Refer to Table 18-11. What is the fourth worker's marginal product of labor?

• A)120 cupcakes
• B)140 cupcakes
• C)160 cupcakes
• D)180 cupcakes

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Definitions:

Potential Output

This refers to the maximum output an economy can produce without leading to inflation, assuming all resources are fully utilized.

Actual Price Level

The Actual Price Level refers to the current general level of prices for goods and services in the economy at a specific point in time.

Actual Price Level

The current average of all prices of goods and services in an economy, indicating the cost of living and the economic environment.

Potential Output

The maximum amount of goods and services an economy can produce when it is fully employing its resources.