Gerhardt Is a Bicycle Mechanic,and He Can Repair 6 Bikes

question 65

Multiple Choice

Gerhardt is a bicycle mechanic,and he can repair 6 bikes a day at a market price of $25.00.If he can't find any bike shop to hire him,

• A)the wage rate must be more than $150 per day.
• B)the wage rate must be less than $25 per day.
• C)then Gerhardt's marginal revenue product must be negative.
• D)the wage rate must be less than $150 per day.
• E)then Gerhardt's marginal product must be negative.

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Definitions:

Buyback Price

Buyback price is the price at which a company agrees to repurchase its own shares from shareholders, often as part of a share repurchase program.

Quality Ratings

Assessments of the creditworthiness or quality of corporations and government bonds, often provided by credit rating agencies.

Required Rates

The minimum returns demanded by investors or lenders to compensate for the risk of an investment or loan.

Bonds

Bonds are debt securities issued by corporations or governments to raise funds, where the bond issuer agrees to pay back the principal along with interest.