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

question 476

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 third worker?

• A)$400
• B)$800
• C)$1,000
• D)$1,600

---

Definitions:

Rust

A type of fungal disease that affects plants, causing reddish-brown spots, or the oxidation of iron and its alloys resulting in reddish-brown flaking coatings.

Iron

A chemical element with symbol Fe, important in biological processes and industrial applications.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the principal constituent of Earth's hydrosphere and the fluids of most living organisms.

Van Der Waal Interactions

Weak attractions between molecules or parts of molecules that result from transient local partial charges.