A Firm's Labor Input,total Output of Labor,and Product Price Schedules

question 118

Multiple Choice

A firm's labor input,total output of labor,and product price schedules are given below.Labor is the only variable input. Refer to the above table and information.What is the marginal revenue product of the fifth worker?

• A) $6
• B) $7
• C) $8
• D) $9 The marginal revenue product is the change in revenue earned due to the hiring of one more input.In this case,the fifth worker adds 4 units of output and $9 of revenue because revenue rises from $152 to $161.

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Definitions:

Unfunded Pension Liability

The gap between the pension benefits promised to employees and the actual amount of funds available to meet those obligations.

Long-term Liability

Financial obligations of a business that are due beyond the current fiscal year or operating cycle.

SUTA Payable

State Unemployment Tax Act payable, a liability account for taxes owed by employers to state unemployment insurance programs.

Social Security Tax

Taxes collected by the government from employees and employers to fund the Social Security program, providing retirement, disability, and survivors' benefits.