-Refer to Table 7-1

question 25

Multiple Choice

-Refer to Table 7-1. What is the marginal product of the 4th worker?

• A) 137 pounds
• B) 50 pounds
• C) 12.5 pounds
• D) 5 pounds

---

Definitions:

Marginal Revenue Product

The additional revenue a firm generates by employing one more unit of input, typically labor.

Labor Market

A marketplace where labor services are bought (by employers) and sold (by workers), determining the allocation of labor resources and wages.

Equilibrium

A state in a market where the quantity supplied equals the quantity demanded, leading to a stable situation where there is no tendency for change.

Economic Rents

Payments made to a factor of production in excess of what is needed to keep it in its current use.