Assume That a Competitive Firm Sells Its Product for $5

question 91

Multiple Choice

Assume that a competitive firm sells its product for $5 per unit.The firm wants to increase the number of workers employed from 100 to 101 and expects output to rise from 400 units to 410 units.The firm pays a constant wage of $8 per hour to all of its workers.Based on the given information,the marginal value product of the 101st worker is _____.

• A)$5
• B)$10
• C)$50
• D)$80

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Definitions:

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Financial instruments that pool together home mortgage loans and allow investors to receive payments based on the underlying mortgages' interest and principal repayments.

Poor Credit Ratings

Indicates a low assessment of creditworthiness, suggesting that the individual or entity is a higher risk to lenders.

Relatively Safe

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An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.