​Suppose 2 Froyo Machines and 12 Workers Produce Eight Quarts

question 58

Multiple Choice

​Suppose 2 froyo machines and 12 workers produce eight quarts of froyo. If the marginal product of the thirteenth worker is two quarts, then which of the following is true?

• A)Thirteen workers produce ten quarts of froyo.
• B)Thirteen workers produce two quarts of froyo.
• C)The thirteenth worker alone produces ten quarts of froyo.
• D)Thirteen workers produce six quarts of froyo.
• E)The diminishing marginal returns begin with the thirteenth worker.

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Definitions:

Contingent Reward

A leadership strategy where the leader sets specific goals and provides rewards to followers for achieving those goals.

Reciprocal Process

A mutual exchange or interaction in which two or more parties can influence each other in dynamic ways.

Mutual Influence

A concept in leadership and organizational behavior that emphasizes the reciprocal effects between leaders and followers, where both parties impact each other's actions and outcomes.

Specified Rewards

Rewards clearly defined and communicated in advance, contingent on the achievement of specific objectives.