Assume Manfred's Shoe Shine Parlor Hires Labor, Its Only Variable

question 228

Multiple Choice

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. $\begin{array} {| c | c | c | c|} \text { Units of Labor } & \text { Total Product } & \begin{array} { c } \text { Marginal } \\\text { Product }\end{array} & \begin{array} { c } \text { Total } \\\text { Revenue }\end{array} \\\hline 0 & 0 & & \\\hline 1 & 14 & 14 & \$ 42 \\\hline 2 & & 10 & \\\hline 3 & 30 & & 90 \\\hline 4 & 35 & & \\\hline 5 & 39 & & 117 \\\hline 6 & & & 126 \\\hline 7 & 44 & 2 & 132 \\\hline\end{array}$ If the wage rate is $11 and Manfred's only fixed input is capital, the total cost of which is $30, then what will be his economic profit?

• A) $62
• B) $42
• C) $28
• D) $32

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Definitions:

Anterograde Amnesia

The inability to form long-term memories of events occurring after a brain injury or brain surgery, although memories formed before the trauma are usually intact and short-term memory is unaffected.

Hippocampus

A region of the brain associated with memory formation, organization, and storage.

New Memories

Information or experiences that are newly encoded into an individual's memory system.

Infantile Amnesia

The relative inability of older children and adults to recall events from the first few years of life.