Assume Labor Is the Only Variable Input and That an Additional

question 111

Multiple Choice

Assume labor is the only variable input and that an additional input of labor increases total output from 72 to 78 units.If the product sells for $6 per unit in a purely competitive market,the MRP of this additional worker is:

• A) $6.
• B) $12.
• C) $36.
• D) $72.

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Definitions:

Government-Approved Bank

A financial institution that has received official authorization from the government to operate within certain regulatory standards.

Depreciation

The reduction in the value of an asset over time, particularly due to wear and tear.

Foreign Exchange Market

A global decentralized or over-the-counter market for the trading of currencies, facilitating international trade and investment by enabling currency conversion.

Spot Exchange

Involves the immediate transaction or exchange of financial instruments or commodities for immediate delivery.