The Relationship Between Labor Usage and Output at the Local

question 67

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 value of marginal product for the first worker is _______.

• A)25 cups of espresso
• B)$31.25
• C)$25
• D)$20

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Definitions:

Infinite

Without limit or end; extending beyond measurable or conceivable boundaries.

Negative

In economic context, it refers to a situation or outcome that reduces efficiency, value, or well-being.

Zero

The numerical value that represents no quantity or amount in mathematics; also used to signify a starting point.

Non-linear Curve

A graphical representation where the rate of change is not constant, demonstrating a relationship that does not follow a straight line.