Table 13-4
the Following Table Shows the Production Possibilities for Charles

question 50

Multiple Choice

Table 13-4
The following table shows the production possibilities for Charles' math tutoring company.
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$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Labor } \\\text { (Number of tutors) }\end{array} & \begin{array} { c } \text { Output } \\\text { (Number of students } \\\text { tutored per week) }\end{array} \\\hline 0 & 0 \\\hline 1 & 20 \\\hline 2 & 45 \\\hline 3 & 60 \\\hline 4 & 70 \\\hline\end{array}$$ ​
-Refer to Table 13-4. Suppose that Charles's math tutoring company has a fixed cost of $50 per month for his cell phone. Each worker costs Charles $60 per day. As output increases from 45 to 70 students, Charles's total cost curve

• A)increases but gets flatter.
• B)increases and gets steeper.
• C)decreases and gets flatter.
• D)decreases but gets steeper.

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Definitions:

Nominal Rate

The interest rate set by the lending institution, not adjusted for inflation, representing the actual yearly cost of funds over the term of a loan.

Compounding Period

The period of time after which interest is credited to the depositor’s account for purposes of computing subsequent interest.

Interest Rate

The percentage charged on a loan or paid on savings over a specific period, usually expressed as an annual percentage of the principal.

Invested Today

The action of allocating resources, usually money, in the present with the expectation of receiving a future return.