Sam's Scarves has 2 knitting machines and employs 2 people. They ...

[corkyiscool3328]

Sam's Scarves has 2 knitting machines and employs 2 people. They produce 15 scarves a day. If the firm hires an additional person, the 3 workers can produce 19 scarves a day other things remaining the same.
 
  The market for scarves is perfectly competitive and the price of a scarf is 20. The value of marginal product of the third worker is ________. A) 80
  B) 300
  C) 380
  D) 4 scarves

Question 2

The figure above shows the market for coffee. If one firm owns all the coffee outlets and sells 10 million pounds of coffee a month, the deadweight loss is
 
  A) zero.
  B) 7.5 million.
  C) 15 million.
  D) 10 million

[Alyson.hiatt@yahoo.com]

Answer to Question 1

A

Answer to Question 2

B

[corkyiscool3328]

Great answer, keep it coming

[momolu]

Thanks for the timely response, appreciate it