The Relationship Between Labor Usage and Output at the Local

question 34

Multiple Choice

The relationship between labor usage and output at the local coffee shop is summarized in the table below.The price of a cup of espresso is $1.25 and no other inputs are required. $$\begin{array} { c c } \begin{array} { c c } \text { Labor } \\\underline { \text { Input }}\end{array} & \begin{array} { c } \text { Cups of } \\\underline { \text { espresso }}\end{array} \\ 0 & 0 \\1 & 25 \\2 & 45 \\3 & 60 \\4 & 70 \\5 & 75\end{array}$$
The marginal product of the fourth worker is _______.

• A)70
• B)60
• C)17.5
• D)10

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Definitions:

Net Present Value

This represents the discrepancy between what cash comes in at its current value and what cash goes out at its current value over an allocated period.

Market Value Per Share

The current price at which a company's stock is trading on the open market.

Equipment

Tangible assets used in operations, such as machinery or tools, which play a crucial role in the production or service process.

Rights Offering

A corporate issuance of rights to current shareholders allowing them to purchase additional shares directly from the company at a discount to the current market price.