If the Marginal Physical Product of the Fourth Acre of Land

question 160

Multiple Choice

If the marginal physical product of the fourth acre of land used were 10,the MPP of the fifth acre were 6,the MPP of the sixth acre were 2,the MPP of the seventh acre were 0,and the MPP of the eighth acre were -3,what is the maximum number of acres of land that would be used?

• A)4
• B)5
• C)6
• D)7
• E)8

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Definitions:

Dividends Paid

The total amount of money distributed to shareholders from a corporation's earnings.

Retention Ratio

The percentage of net earnings not paid out as dividends but kept by the company for reinvestment.

Cash Dividends

Distributions from a company's earnings paid to its shareholders.