When Burger Barn Hires One Worker, 20 Customers Can Be

question 247

Multiple Choice

When Burger Barn hires one worker, 20 customers can be served in an hour. When Burger Barn hires two workers, 50 customers can be served in an hour. The marginal product of the second worker is ________ customers served per hour.

• A) 15
• B) 30
• C) 40
• D) 67.5

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Definitions:

Tax Base

The total amount of assets or income that can be taxed by a government, forming the foundation of its revenue.

Progressive Tax

A tax system in which the tax rate increases as the taxable income increases, placing a larger financial burden on wealthier individuals.

Marginal Tax Rate

The rate at which your last dollar of income is taxed, often increasing as income rises.

Average Tax Rate

The ratio of the total amount of taxes paid to the total taxable income, showing the share of income paid in taxes.