Table 18-2 Consider the Following Daily Production Data for Davis Golf Balls

question 192

Multiple Choice

Table 18-2
Consider the following daily production data for Davis Golf Balls, Inc. Davis Golf Balls, Inc. sells golf balls for 50 cents each and pays the workers a wage of $30 a day.

-Refer to Table 18-2.What is the marginal profit of the fourth worker?

• A)$7.50
• B)$20
• C)$50
• D)$100

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Definitions:

Inelastic Demand

A situation where the demand for a product does not change significantly with a change in the price of that product.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, typically because consumers will choose higher quality substitutes when they can afford them.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period, typically showing a downward slope from left to right.