Ajax Has Just Discovered That the Marginal Revenue Product Generated

question 161

Multiple Choice

Ajax has just discovered that the marginal revenue product generated by the last worker hired was $125 while the marginal factor cost was $85. 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:

Largest Group

Refers to the most numerous or most extensive category or grouping in a given context or classification.

Protozoans

Single-celled eukaryotic organisms that may exhibit animal-like behaviors, such as movement, and are often found in aquatic or moist terrestrial environments.

Amoeboids

A group of organisms, mostly unicellular, that move and ingest food by extending pseudopods.

Fungal Cell Walls

Rigid outer layers found in fungal cells, composed primarily of chitin, which provide structure and protection.