Consider the Following Table, Which Shows the Total Number of Customers

question 39

Multiple Choice

Consider the following table, which shows the total number of customers served per hour as the number of cash registers is increased. $$\begin{array} { l l l } \hline \begin{array} { l } \text { Number of } \\\text { Cash Registers } \\\end{array} & \begin{array} { l } \text { Total } \\\text { Customers }\end{array} & \begin{array} { l } \text { Marginal } \\\text { Product }\end{array} \\\hline 0 & 5 & - \\1 & 20 & 15 \\2 & - & 12 \\3 & 42 & - \\4 & 48 & 6 \\5 & - & 2 \\\hline\end{array}$$ The marginal product of the third cash register is

• A) 42.
• B) 6.
• C) 12.
• D) 9.
• E) 10.

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Definitions:

Cost of Debt

The effective rate that a company pays on its borrowed funds from financial institutions and other sources.

Tax Effects

The impact of taxation on the financial decisions and outcomes of individuals and businesses, including tax liabilities, benefits, and incentives.

Risk-Free Rate

The risk-free rate is the theoretical return on an investment with no risk of financial loss, often represented by the yield on government securities.

Marginal Cost of Capital

The additional cost that a company incurs to obtain one more unit of capital, such as equity or debt, often used in making investment decisions.