If Four Workers Can Produce 18 Chairs a Day and Five

question 75

Multiple Choice

If four workers can produce 18 chairs a day and five can produce 20 chairs a day, the marginal product of the fifth worker is

• A)2 chairs.
• B)3 chairs.
• C)4 chairs.
• D)38 chairs.

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Definitions:

Differentiated Product

A product that is distinct from similar products offered by competitors because of features, branding, quality, or other attributes.

Price Elasticity Of Demand

A measure of how much the quantity demanded of a good responds to a change in price.

Price Discrimination

The strategy of selling the same product or service at different prices to different customers, based on their willingness to pay.

Natural Monopoly

A market condition where a single firm can supply a good or service to an entire market at a lower cost than could be achieved by multiple firms.