When Sam's Scarves Uses 2 Knitting Machines and Employs 3

question 213

Multiple Choice

When Sam's Scarves uses 2 knitting machines and employs 3 people, total revenue is $330 a day. When Sam's Scarves uses 2 knitting machines and employs 4 people, total revenue is $360 a day. The value of marginal product of the third worker is

• A) $110.
• B) $30.
• C) $360.
• D) $90.

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Definitions:

Cash Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Declaration Date

The specific date on which a company's board of directors announces its next dividend payment or stock dividend.

Legal Obligation

A duty enforced by law, requiring an entity or individual to perform or refrain from performing a certain action.

Date of Record

The date set by a corporation upon which the shareholders must be registered to be eligible to receive dividends or participate in corporate voting.