Joey Cuts Lawns During the Summer

question 28

Multiple Choice

Joey cuts lawns during the summer.Let q equal the number of acres mowed per day,and let L equal the number of hours worked per day.Joey never works more than eight hours per day,and during that time his short-run production function is q = 0.2 ∗ L.Which of the following statements is FALSE?

• A) Joey's marginal productivity equals his average productivity.
• B) Joey's marginal productivity diminishes by 0.2 for each additional hour worked.
• C) Joey's average productivity is constant.
• D) Joey's marginal productivity is constant.

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Definitions:

Sales Volume

The quantity of products or services sold by a business during a specific period, often used as an indicator of business performance.

Cost Structure

The composition of a company's costs, including the proportion of fixed versus variable costs incurred in its operations.

Break-Even Occupancy Rate

The occupancy level at which a hotel or rental property's operating income equals its operating expenses.

Room Nights

A measure in the hospitality industry representing the number of rooms booked multiplied by the number of nights each room is reserved.