Author Question: Refer to Scenario 14.2. What is the marginal revenue product of the 4th worker? A) 20 B) 25 ... (Read 13 times)

jazziefee · **on:** Jul 1, 2018

Refer to Scenario 14.2. What is the marginal revenue product of the 4th worker?

A) 20
B) 25
C) 30
D) 32.5
E) 35

Question 2

You using a Laspeyres (fixed-weight )price index to compare price changes over time, and the index is based on consumption bundles from 2005 when energy costs were lower and housing costs were higher. Your results are likely to:

A) Overstate changes in the cost of living because the weight assigned to energy is too small.
B) Overstate changes in the cost of living because the weight assigned to energy is too large.
C) Understate changes in the cost of living because the weight assigned to housing is too small.
D) Understate changes in the cost of living because the weigh assigned to housing is too large.