-Refer to the Above Table

question 38

Multiple Choice

-Refer to the above table. Suppose the marginal revenue product of the 7th worker is $1100. This implies that

• A) the price of the good is $1.
• B) the price of the good is $8.
• C) the price of the good is $20.
• D) we cannot tell what the price of the good is without more information.

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Definitions:

Benchmark

A standard or point of reference against which things may be compared or assessed.

Agency Problem

A conflict of interest between a company's management and its shareholders, where the management may act in their own best interests rather than those of the shareholders.

Shareholders

Individuals or entities that own shares of stock in a corporation, giving them ownership interests and possibly rights to dividends and voting.