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:

Disinflation

A reduction in the rate of inflation; a slowdown in the rate at which prices increase.

Hyperinflation

A significantly rising inflation rate that accelerates quickly, leading to a swift decrease in the value of currency.

Variety

The range of different items, products, or choices available within a category or market.

Double Coincidence

A term from economics referring to the situation where two parties each hold an item the other wants, enabling an exchange without the need for money.