The Following Table Shows Total Output Produced by Different Units

question 11

Multiple Choice

The following table shows total output produced by different units of capital.Table 14.3
The marginal revenue product of a resource is the product of the marginal product of the resource and the marginal revenue.
-Consider a perfectly competitive firm that produces computers. Each additional worker at this firm can produce four computers. Calculate the marginal factor cost if the computers are sold for $1,000 each, and the firm is maximizing profit. (Assume that marginal revenue product is the product of marginal product of the input and the marginal revenue of the firm.)

• A)$4,000
• B)$500
• C)$1,000
• D)$1,500
• E)$400

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Definitions:

Randomization

Controlling for the effects of extraneous variables by ensuring that the variables operate in a manner determined entirely by chance.

Experimental Control

Eliminating the influence of an extraneous variable on the outcome of an experiment by keeping the variable constant in the experimental and control groups.

Spurious Relationship

A false association between two variables that appears to be causally linked but is actually due to an extraneous variable.

Nonexperimental Method

Use of measurement of variables to determine whether variables are related to one another. Also called correlational method.