The Relationship Between Labor Usage and Output at the Local

question 91

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 benefit to the coffee shop of hiring the fifth worker is

• A)70 cups of espresso.
• B)75 cups of espresso.
• C)$93.75.
• D)$6.25.

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Definitions:

Deposits

Funds placed into banking institutions for safekeeping. These can be made into various types of accounts including savings, checking, and money market accounts.

Effective Rate

The actual interest rate an investor receives after the effects of compounding interest are taken into account.

Compounding Interval

The period of time at the end of which interest is added to the principal balance of an investment or loan.

Interest

The charge for borrowing money or the return on invested capital, generally expressed as a percentage rate.