-The Table Shows Information for Jen's Gymnastics

question 126

Multiple Choice

-The table shows information for Jen's Gymnastics.Jen hires coaches and can charge $20 per hour for gymnastics lessons.Jen's Gym pays coaches $30 per hour.The table shows that Jen's Gym will hire ________ coaches because ________.

• A) any number less than 5; the marginal product stops increasing with the fifth coach
• B) 4; the gym will earn a profit because the value of marginal profit exceeds the wage rate., but hiring a fifth coach will reduce profit
• C) 1; the value of marginal product is the highest
• D) 5; the marginal product is at its maximum
• E) 5; total product reaches its maximum

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Definitions:

Shares Outstanding

Shares outstanding refer to the total number of shares of a company’s stock that are currently owned by all its shareholders, including shares held by institutional investors and restricted shares owned by the company’s officers and insiders.

Expectations Theory

A hypothesis in finance that the long-term interest rates reflect expected future short-term rates, adjusting for risk premium.

Dividend Distribution

The payment of a portion of a company's earnings to its shareholders, usually in the form of cash or additional stock.

Signaling Effect

The notion that actions by a company can provide signals to investors and the market about its future prospects.