The Chart Below Describes the Short Run Productivity of Workers

question 46

Multiple Choice

The chart below describes the short run productivity of workers at Paper Pushers Inc. ,an office support firm that has no variable costs other than labor. $\begin{array}{|l|l|}\hline \text { Workers } & \text { Pages per Hour } \\\hline 1 & 40 \\\hline 2 & 75 \\\hline 3 & 105 \\\hline 4 & 125 \\\hline 5 & 140 \\\hline 6 & 150 \\\hline 7 & 155 \\\hline\end{array}$
The VMP of the sixth worker is _____ than the VMP of the fourth worker because

• A) less;the firm experiences economies of scale.
• B) less;the sixth worker is less skilled than the fourth worker.
• C) less;the firm experiences diminishing returns to inputs.
• D) more;the workers can specialize and exploit comparative advantages.

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Definitions:

Long-term

Refers to holding investments or assets for a duration typically exceeding one year.

Capital Structure

The composition of a firm's financing through a combination of debt and equity.

Funds

Financial resources that are set aside for a specific purpose or investment, including both publicly traded funds and private investments.