Which of the following is the most accurate definition of a worker's "marginal revenue product"?
a. The change in the firm's profits as the result of hiring an additional worker.
b. The change in the firm's total revenue as the result of hiring an additional worker.
c. The change in the firm's output as the result of hiring an additional worker.
d. The change in the firm's cost as the result of hiring an additional worker.
b
You might also like to view...
The figure above shows the market for milk. If the government pays the milk producers a subsidy and production increases to 300 gallons per day
A) the market is efficient because the marginal social benefit from the last gallon of milk exceeds its marginal social cost. B) the market is efficient because the total social benefit from milk exceed the total social cost. C) there is a deadweight loss because the marginal social benefit from the last gallon of milk exceeds its marginal social cost. D) there is a deadweight loss because the marginal social cost of the last gallon of milk exceeds its marginal social benefit.
Refer to Figure 4-1. What is the total amount that Arnold is willing to pay for 2 burritos?
A) $2.00 B) $4.50 C) $7.50 D) $10.00