Gerald Owns a Factory That Produces,among Other Things,wheelbarrows

question 64

Multiple Choice

Gerald owns a factory that produces,among other things,wheelbarrows.He currently has 7 employees; with 7 employees,his factory can produce 12 wheelbarrows per day.If he hired an eighth employee,he'd be able to produce 16 wheelbarrows per day.Therefore,the marginal product of the eighth employee is ________ wheelbarrow(s) .

• A) 2
• B) 1
• C) 8
• D) 16
• E) 4

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Definitions:

Market Value

The current value of an asset or company based on the price at which it can be sold in the marketplace.

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders voting rights and a claim on profits.

Stock Dividend

A payment made in the form of additional shares rather than cash, reflecting a company's dedication to reinvesting in its growth.

Par Value

A nominal value assigned to a security, such as a share of stock, representing its legal capital per share.