Suppose the Marginal Product of the Second Worker Hired by a Firm

question 137

Multiple Choice

Suppose the marginal product of the second worker hired by a firm is 3, and the price of the last unit produced is $7.Which of the following is true of the marginal revenue product of the second worker?

• A)It must equal $21.
• B)It must be less than or equal to $21.
• C)It must be greater than or equal to $21.
• D)It equals $21 only if the firm is a price searcher (e.g., monopoly).
• E)We can conclude nothing about marginal revenue product.

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Definitions:

Dual Code Hypothesis

A theory suggesting that visual and verbal information are processed and stored in the brain through two distinct systems.

Verbal Code

A symbolic system used in the representation and communication of messages that can be spoken, written, or signed.

Visual Image

A visual image is a mental representation or picture created by the brain that can be recalled or imagined without the presence of the physical object.

Perceptual Equivalence

The phenomenon where different stimuli are perceived as equivalent or similar, based on subjective or perceptual criteria.