You Own a Pizza Shop Called "Pizzas'R' Us If You Operate One Hour Every Day, What Is the Are

question 23

Multiple Choice

You own a pizza shop called "Pizzas'R' Us". Currently you are paying your cooks an hourly wage of $20. You sell a medium pizza for $10. By hiring more cooks, you can increase your pizza production as shown in the following table. $$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Number of } \\\text { cooks }\end{array} & \begin{array} { l } \text { Total production of } \\\text { pizzas each hour }\end{array} \\\hline 0 & 0 \\\hline 1 & 4 \\\hline 2 & 7 \\\hline 3 & 9 \\\hline 4 & 10 \\\hline 5 & 10 \\\hline\end{array}$$ If you operate one hour every day, what is the marginal cost of hiring the 4^th cook?

• A) $10
• B) $20
• C) $40
• D) $60

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Definitions:

Future Values

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Compounded Monthly

A method of calculating interest where the accumulated interest is added to the principal amount at the end of each month.

Single Parent

An individual who has at least one child and raises them without the assistance of the other biological parent in the home.

Education

The systematic process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through methods such as teaching, training, storytelling, discussion, and directed research.