Solve the Problem $\frac { 1 } { 8 } .$

question 130

Multiple Choice

Solve the problem.
-John presently earns $96 a week doing yard chores after school. After 3 months, his pay will Increase by $\frac { 1 } { 8 } .$ How much will he then earn per week?

• A) $153.60
• B) $78.75
• C) $128.00
• D) $108.00

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Definitions:

Long Run

In economics, a period of time in which all factors of production and costs are variable and can be adjusted.

New Entrants

Businesses or individuals that recently entered a market or industry, bringing new competition and potentially disrupting existing dynamics.

Economic Profits

The financial gain obtained after subtracting both explicit and implicit costs from total revenues.

Perfectly Competitive Industry

An industry in which no single producer can influence the market price of the product because the conditions of perfect competition are met.