Table 8-3 -Refer to Table 8-3

question 220

Multiple Choice

Table 8-3
$\begin{array}{|c|c|c|c|}\hline \begin{array}{c}\text { Quantity of } \\\text { Workers }\end{array} & \begin{array}{c}\text { Quantity of } \\\text { Boxes }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Product of } \\\text { Labor }\end{array} & \begin{array}{c}\text { Average } \\\text { Product of } \\\text { Labor }\end{array} \\\hline 0 & 0 & \cdots \cdots & \cdots \\\hline 1 & 50 & & \\\hline 2 & 200 & & \\\hline 3 & 240 & & \\\hline 4 & 264 & & \\\hline 5 & 284 & & \\\hline\end{array}$
-Refer to Table 8-3.The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny's House of Boxes.The capital used to produce the boxes is fixed.Diminishing returns to labor are first observed in this example after Manny hires the ________ worker.

• A) second
• B) third
• C) fourth
• D) fifth

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Definitions:

Retained Earnings

The portion of a company's profits not distributed as dividends to shareholders, but instead reinvested in the business or held as reserves.

Assets

Assets are resources owned by a business or individual, which provide economic value or are expected to generate future benefit.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Limited Liability

A legal structure that limits the financial liability of owners or shareholders of a business to the amount they've invested, protecting personal assets from business debts.