You Operate a Shop That Repairs TVs and VCRs

question 25

Multiple Choice

You operate a shop that repairs TVs and VCRs.The going wage rate in a competitive market for skilled repair people is $18 per hour.Given the current demand for your services,the marginal revenue product of your repair people is $28 per hour.
-If you were to employ one more hour of a repair person's services you would

• A)increase your profit by $28.
• B)increase your profit by $18.
• C)increase your profit by $10.
• D)not increase your profit at all.
• E)decrease your profit.

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Definitions:

Government Export Approval

An official authorization required for goods to be sent out of a country.

Disclose Fee

A charge that must be paid, which is revealed or made known to a party, typically in transactions involving services or financial products.

Financing

The process of providing or securing funds necessary for a purchase, project, or investment.

Principal

The original amount of a debt or investment, exclusive of any interest or growth.