If a Worker Is One Who Receives Tips from Customers

question 4

Multiple Choice

If a worker is one who receives tips from customers, the employer is allowed to reduce the minimum  wage paid to that worker by up to _____ percent, with the difference to be made up by tips received.

• A)40
• B)45
• C)50
• D)55

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Definitions:

Marginal Product

The extra production yielded from the use of one additional unit of a specific input while keeping all other inputs unchanged.

Labor

Refers to human effort, both physical and mental, used in the production of goods and services.

Output

Output is the quantity of goods or services produced by a company, industry, or economy within a specified period.

Average Product

The output per unit of input, calculated by dividing total output by the quantity of inputs.