Thirsty Thelma Owns and Operates a Small Lemonade Stand

question 384

Multiple Choice

Thirsty Thelma owns and operates a small lemonade stand. When Thelma is producing a low quantity of lemonade she has few workers and her equipment is not being fully utilized. Because she can easily put her idle resources to use,

• A)the marginal cost of an extra worker is large.
• B)the marginal cost of one more glass of lemonade is smaller than if output were high.
• C)the marginal product of an extra worker is small.
• D)her lemonade stand is likely to be crowded with workers.

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Definitions:

Top Management

The highest level of executives and administrators responsible for setting strategic goals and making critical business decisions for an organization.

Market Value

The current price at which an asset or service can be bought or sold.

Downsizing

Downsizing refers to the reduction of a company's workforce or the scaling back of its operations to decrease expenses and increase efficiency.

Informal Style

A casual or relaxed manner of communication, often characterized by personal expressions and the absence of strict adherence to grammatical rules.