The Table Below Shows the Total Output Produced by Different

question 89

Multiple Choice

The table below shows the total output produced by different units of a resource. Assume that the resource and output markets are both perfectly competitive. The equilibrium price of the resource is $15.00, and the equilibrium price of the product is $0.50.Table 14.2
Marginal revenue product (MRP) of a resource is the product of the marginal product of the resource and the marginal revenue.
-If a firm hires its fourth worker for $5 and its fifth worker for $8, then

• A)the firm is a monopolist.
• B)the firm must be substituting capital for labor.
• C)the fifth worker must have been less productive than the fourth.
• D)the firm is not maximizing its profit.
• E)the labor market is not perfectly competitive.

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Definitions:

Earned Income Tax Credit

A refundable tax credit for low- to moderate-income working individuals and families, particularly those with children.

Means-Tested

A method for determining whether an individual or family is eligible for government assistance based on their income or resources.

In-Kind Benefit

Non-monetary compensation or goods and services provided instead of cash, often used in social welfare programs or employee benefits.

Medicaid

A health care program in the United States that provides medical benefits to low-income individuals and families.