If the Marginal Product of the Second Worker Hired by a Firm

question 156

Multiple Choice

If the marginal product of the second worker hired by a firm is 14 units and the price of the tenth unit of output is $7,then the marginal revenue product _____

• A)of the second worker is $98 regardless of the structure of the product market.
• B)of the second worker is $98 if the firm is a price maker in the product market.
• C)of the second worker is $98 if the product market is perfectly competitive.
• D)of the tenth worker is $98 if the product market is perfectly competitive.
• E)of the tenth worker is $98 if the firm is a price taker in the product market.

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Definitions:

Futures Price

The agreed price for the future delivery of an asset in a futures contract market.

Spot Exchange Rate

The current exchange rate at which one currency can be traded for another immediately.

Arbitrage

The strategy of exploiting price differences of identical or similar financial instruments across different markets to gain profit with minimal risk.