Microeconomics Quiz (Ch. 11 and 13)

harold brown runs a company that sells encyclopedia sets for $250 each. When he employs 10 workers, they can sell 60 sets per week, while only 54 sets are sold when 9 workers are employed. What is the weekly marginal revenue product of the tenth worker?

a. $250 b. $1,250 c. $1,500 d. $15,000

firms should hire additional units of a resource as long as the:

a. marginal product of the resource exceeds the price of the resource multiplies by the quantity of output produced b. marginal product of the resource is less than the price of the resource c. price of the output produced is positive d. marginal revenue product of the resource exceeds (up to the level/point where MRP = MFC!!) the cost of an additional unit of the resource

jim smith runs a company that sells encyclopedia sets for $200 each. When he employs 5 workers, they can sell 20 sets per week, while only 17 sets are sold when 4 workers are employed. If the wage of workers in this skill category is $500 per week, should the fifth worker be hired?

a. no, because the MRP of the fifth worker is less than $500 per week b. no, because the MRP of the fifth worker is more than $500 per week c. yes, because the MRP of the fifth worker is lass than $500 per week d. yes, because the MRP of the fifth worker is less than $500 per week

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

the marginal revenue product of a resource is:

a. the marginal product (MP) OR marginal physical product (MPP) of the resource multiplied by the price of the product it helps to produce b. the price of the product times the price of the resource c. larger when the product price is smaller d. larger when the marginal product is smaller