Table 162 Gives the Number of Oil Changes That Can Be

question 34

Multiple Choice

$$\begin{array}{l}\begin{array} { | c | c | } \hline \text { Number of Employees } & \text { Total Output } \\\hline 1 & 6 \\\hline 2 & 11 \\\hline 3 & 15 \\\hline 4 & 18 \\\hline 5 & 20 \\\hline\end{array}\\\text { Table } 16.2\end{array}$$ Table 16.2 gives the number of oil changes that can be performed at a local oil change business based on the number of employees hired.If the price of an oil change is $20,what is the marginal revenue of the third employee?

• A) $80.
• B) $360.
• C) $5.
• D) $40.

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Definitions:

Economic Profit

The gap between the total earnings of a business and all its costs, encompassing out-of-pocket and opportunity costs.

Perfect Competitor

A Perfect Competitor refers to a hypothetical firm in a perfectly competitive market that cannot influence the market price and must accept it as given.

Short Run

A period in economics during which some factors, like capital, are fixed and cannot be changed, emphasizing immediate effects.

Price-Taker

A price-taker is a market participant that cannot influence the price of a good or service and must accept the prevailing market price.