Consider the Following Table for a Firm

question 59

Multiple Choice

Consider the following table for a firm.The first column shows the number of units of a variable factor of production employed by the firm.
TABLE 13-2
-Refer to Table 13-2.Suppose the firm is a perfect competitor and faces a given price of the product equal to $2 per unit.The marginal revenue product of the 5th unit of the factor is

• A)$128.
• B)$148.
• C)$20.
• D)$40.
• E)$2.

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Definitions:

Advertising Expenditures

The amount of money spent on promoting products, services, or brands through various media channels.

Profit Functions

Mathematical functions that represent a firm’s profits, typically as a function of price and quantity.

Pigouvian Tax

A tax imposed on any market activity that generates negative externalities (costs not reflected in the market price) with the aim of correcting the market outcome.

Cost Function

A mathematical relation that describes how production costs change with variations in the level of output.