Rex Carr Could Pay $10 for a Shovel That Lasts

question 21

Multiple Choice

Rex Carr could pay $10 for a shovel that lasts one year and pay $5 a car to his brother Scoop to bury the cars, or he could buy a low-quality car smasher that costs $200 a year to own and that smashes cars at a marginal cost of $1 per car.If it is also possible for Rex to buy a high-quality hydraulic car smasher that cost $550 per year to own and if with this smasher he could dispose of cars at a cost of $.80 per car, it would be worthwhile for him to buy this high-quality smasher if he planned to dispose of

• A)at least 1,760 cars per year.
• B)no more than 1,750 cars per year.
• C)at least 1,750 cars per year.
• D)no more than 875 cars per year.
• E)at least 875 cars per year.

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Definitions:

Labor Market

The supply of available workers in relation to available work.

Median Earnings

The middle value of earnings in a given distribution, such that half of the population earns more and half earns less.

Labor Market

A marketplace where workers find paying work, employers find willing workers, and wage rates are determined.

Employee Benefits

Non-wage compensation provided to employees in addition to their normal wages or salaries, such as health insurance, pensions, and paid vacations.