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

question 238

Multiple Choice

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. What is the marginal product of the sixth worker?

• A)5 units
• B)4 units
• C)3 units
• D)2 units

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase a stock, bond, commodity, or other asset at a specified price within a specific time period.

Expiration

The end of the life of a financial instrument or contract, after which it ceases to be valid.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Expiration

The date on which a derivative contract such as an option or futures contract becomes void and the right to exercise it no longer exists.