Assume Manfred's Shoe Shine Parlor Hires Labor, Its Only Variable

question 33

Multiple Choice

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. If the wage rate is $11, how many workers will Manfred hire to maximize profits?

• A)3
• B)4
• C)6

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Definitions:

Premack Principle

The Premack Principle is a psychological concept that states a more preferred activity can be used as a reward to reinforce the performance of a less preferred activity.

Spanking

A form of corporal punishment that involves hitting the buttocks of another person to cause physical pain, typically used as a disciplinary measure.

Physical Punishment

The application of physical power aimed at making someone feel pain, without causing harm, in order to achieve correction or manage behavior.

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus strengthens a behavior’s occurrence.