When 4 Units of Labor Are Employed, Total Product Is

question 279

Multiple Choice

When 4 units of labor are employed, total product is 6 units; when 5 units of labor are employed, total product is 8 units of output. If the price of output is $5 per unit, what is the marginal revenue product of the 5th unit of labor?

• A) $2
• B) $5
• C) $10
• D) $40

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Definitions:

Leadership Model

A framework for effective leadership that outlines the traits, behaviors, and processes leaders can use to guide, influence, and inspire their followers.

Management by Exception

A management strategy where leaders only intervene in the operation if performance metrics deviate from set standards, allowing employees to work autonomously until issues arise.

Transactional Leadership

A leadership style focused on the exchanges between leaders and followers, where rewards are given for accomplishments or penalties for failure.

Transactional Leadership

A leadership style focused on the exchange between leaders and followers, relying on rewards and punishments to achieve compliance.