Suppose two workers can harvest $46 and three workers can harvest $60 worth of apples per day. On the basis of this information we can say that the:
A. Marginal product of each of the first two workers is 23
B. Marginal revenue product of each of the first two workers is $23
C. Marginal revenue product of the third worker is $14
D. Third worker should not be hired
C. Marginal revenue product of the third worker is $14
You might also like to view...
In the specific factors model, which of the following will increase the quantity of labor used in cloth production?
A) an increase in the price of cloth relative to that of food B) an increase in the price of food relative to that of cloth C) a decrease in the price of labor D) an equal percentage decrease in the price of food and cloth E) an equal percentage increase in the price of food and cloth
When drawing a production possibilities frontier, all of the following are usually assumed except one. Which is the exception?
a. The quantity of resources is rapidly growing. b. Technology is fixed. c. Resources can be shifted between production of the two goods. d. The production possibilities frontier is drawn for a particular time period. e. Resources are fully and efficiently employed.