Which of the Following Is Always True About Tipped Employees

question 83

Multiple Choice

Which of the following is always true about tipped employees?

• A) The minimum wage for tipped employees is consistent among all states.
• B) They only earn occasional tips from other employees.
• C) They must earn more than 50% of their income from tips.
• D) They have the opportunity to earn tips from patrons as a regular part of their job.

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Definitions:

Total Cost Function

A mathematical relationship expressing the total cost of production as a function of the quantity of output.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs required for the production of goods or services.

Implicit Costs

The opportunity costs of utilizing resources owned by the firm that could have been employed elsewhere, not directly paid out in cash.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, leading to a decreased cost per unit.