Sunshine's Organic Market sells organic produce. Assume that labor is the only input that varies for the firm. The store manager has determined that if she hires 5 workers, the store can sell 150 pounds of produce per day. If she hires 6 workers, the store can sell 170 pounds of produce per day. The store earns $4 for each pound of produce that it sells, and the manager pays each worker $60 per
day. Which of the following is not correct?
a. For the 6th worker, the marginal product is 20 pounds of produce per day.
b. For the 6th worker, the marginal revenue product is $20 per day.
c. The store earns a higher profit by employing 6 workers than by employing 5 workers.
d. Assuming no changes in either the daily wages paid to store workers or the price at which the store sells its produce, the firm would maximize profits by hiring a 7th worker so long as the store can increase its sales to at least 185 pounds per day.
b
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Economic growth
a. involves both benefits and costs b. is beneficial to the economy only if it arises from population growth c. is beneficial to the economy only if it arises from technological change d. involves costs that usually outweigh the benefits e. imposes costs because it requires a movement along the production possibilities frontier
Monetary policy is determined by
a. the president and Congress and involves changing government spending and taxation. b. the president and Congress and involves changing the money supply. c. the Federal Reserve and involves changing government spending and taxation. d. the Federal Reserve and involves changing the money supply.