Suppose the Marginal Product of the Second Worker Hired by a Firm

question 51

Multiple Choice

Suppose the marginal product of the second worker hired by a firm is 3 units and the price of the last unit produced is $7.Which of the following is true of the marginal revenue product of the second worker?

• A)It equals $21.
• B)It is less than or equal to $21.
• C)It is greater than $21.
• D)It equals $21 only if the firm is a price maker.
• E)It equals $7.

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Definitions:

Income Rankings

A hierarchy or classification of incomes, from the lowest to the highest.

Productivity

The quantity of goods and services produced from each unit of labor input.

Productivity

A measure of the efficiency of production, often calculated as the ratio of outputs produced to inputs used.

Income Per Person

The average amount of money earned by an individual in a specific area or country, often used to measure economic well-being.