-If This Firm Were a Perfect Competitor Selling Its Entire

question 26

Multiple Choice

$$\begin{array}{l}\begin{array} {ccc } \text { Units of Input}&\text { Units of Output }\\1 & 4 \\2 & 9 \\3 & 13 \\4 & 15 \\5 & 16 \\6 & 16 \\7 & 15\end{array}\end{array}$$
-If this firm were a perfect competitor selling its entire output at a price of $10,the marginal revenue product of the fourth unit of output would be

• A)$0.
• B)$10.
• C)$15.
• D)$20.
• E)$150.

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Definitions:

Marginal Costs

The increase in total production cost that arises from producing one additional unit of a good or service.

Average Fixed Cost Curve

A graph that shows the fixed costs of production divided by the quantity of output produced, illustrating how these costs dilute over larger production volumes.

U-Shaped

A descriptive term often used in economics and statistics to describe a graph or curve that resembles the shape of the letter "U", indicating a particular kind of relationship or trend.

Positive Amount

A value that is greater than zero, indicating a quantity that adds to a total rather than subtracting from it.