Table 18-8 Harold and Maude Own a Dance Studio Where They and They

question 425

Multiple Choice

Table 18-8
Harold and Maude own a dance studio where they and their employees teach ballroom dancing. Their company is a competitive, profit-maximizing firm. Harold and Maude's production function is detailed in the table below.
-Refer to Table 18-8. If Harold and Maude pay their workers $80 per day and charge $20 per dance lesson, what is the value of the marginal product of the second worker?

• A)$400
• B)$800
• C)$1,600
• D)$4,800

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