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

question 93

Multiple Choice

If the marginal product of the second worker hired by a firm is 14 units and the price of a unit of output is $7 regardless of the quantity of output sold, then the marginal revenue product of the second worker is

• A)$98
• B)$14
• C)$7
• D)$2
• E)$21

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Definitions:

Cash Collections

The process of gathering and managing cash inflows from various sources, such as sales or receivables.

Planning

Selecting a course of action and specifying how the action will be implemented.

Control

Those steps taken by management to increase the likelihood that all parts of the organization are working together to achieve the goals set down at the planning stage.

Production Budget

A financial plan showing the number of units to be produced in a period to meet sales and inventory requirements.