A Competitive Firm Sells Its Output for $60 Per Unit

question 131

Multiple Choice

A competitive firm sells its output for $60 per unit. Assume that labor is the only input that varies for the firm. The marginal product of the 10th worker is 20 units of output per day; the marginal product of the 11th worker is 16 units of output per day. The firm pays its workers a wage of $150 per day. For the 11th worker, the value of the marginal product of labor is

• A)$480.
• B)$960.
• C)$1,200.
• D)$2,400.

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Definitions:

Hostile

Exhibiting or feeling antagonism or enmity towards someone or something, often resulting in aggressive behavior.

Excessively Competitive

Displaying an extreme or intense desire to win or outperform others beyond what is considered normal or healthy.

Angered Easily

A characteristic describing individuals who have a low threshold for anger, often reacting with frustration or hostility to situations that others might find tolerable.

Type A Behavior Pattern

A behavior pattern marked by a sense of time urgency, impatience, excessive competitiveness, hostility, and anger; considered a risk factor in coronary heart disease.