Table 18-8 Harold and Maude Own a Dance Studio Where They and They

question 425

Multiple Choice

Table 18-8
Harold and Maude own a dance studio where they and their employees teach ballroom dancing. Their company is a competitive, profit-maximizing firm. Harold and Maude's production function is detailed in the table below.
-Refer to Table 18-8. If Harold and Maude pay their workers $80 per day and charge $20 per dance lesson, what is the value of the marginal product of the second worker?

• A)$400
• B)$800
• C)$1,600
• D)$4,800

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Definitions:

Goal-Setting Process

A systematic approach to setting objectives that are specific, measurable, achievable, relevant, and time-bound (SMART).

Goal Quality

The extent to which goals set within an organization or by an individual are clear, attainable, and measurable.

Participation

The act of taking part or involving oneself in an activity or discussion within an organization to contribute to decision-making processes.

Valued Rewards

Incentives or recognition that hold significant meaning or worth to an individual or group, motivating behavior and fostering a sense of achievement and satisfaction.