The Following Schedule Shows How Many Jars of Jaynie's Jam

question 187

Multiple Choice

The following schedule shows how many jars of Jaynie's Jam can be produced daily with various amounts of labor (assume that the jam is sold in a competitive price-taker market) .
If Jaynie must pay each worker $65 per day and she can sell her jam for $10 per jar, how many workers should she hire if she wants to maximize profits?

• A) 3
• B) 4
• C) 5
• D) 6

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Definitions:

Unwanted Takeovers

Corporate actions where one company attempts to acquire another without the consent of the latter's management.

Ethical

Pertaining to or dealing with morals or principles of morality; pertaining to right and wrong in conduct.

Shareholder Rights Plan

A strategy used by corporations to deter hostile takeovers by allowing shareholders the right to purchase additional shares at a discount, often referred to as a "poison pill."

Greenmail

A situation where a company buys back its own shares from a potential acquirer at a price higher than the market value to avoid a takeover.