Ajax Has Just Discovered That the Marginal Revenue Product Generated

question 68

Multiple Choice

Ajax has just discovered that the marginal revenue product generated by the last worker hired was $75 while the marginal factor cost was $95. What should Ajax do?

• A) Leave the level of production unchanged.
• B) Increase the amount produced.
• C) Reduce the amount produced.
• D) Collect more information before making a decision.

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Definitions:

Landmark Decision

A court ruling that marks a significant change in the interpretation of the law or sets a new precedent.

Importance

Refers to the quality or state of being important, having significant value or influence on matters at hand.

Supreme Court

The highest judicial body in a country, typically having the ultimate appellate jurisdiction over all other courts and significant authority in constitutional matters.