GIVEN: 60 Employees at $9.50/hr

question 1

Multiple Choice

GIVEN:
60 employees at $9.50/hr.
30 employees at $9.10/hr.
20 employees at $8.75/hr.
5 employees at $8.00/hr.

Average number of paid hours per year = 1,900.

-The average cents-per-hour increase of a 5% across-the-board increase would be:

• A) 44¢.
• B) 46¢.
• C) 48¢.
• D) 53¢.

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Definitions:

Economic Loss

Occurs when total cost exceeds total revenue, not covering all explicit and implicit costs.

Economic Profit

The separation between whole income and all charges, factoring in both straightforward and subtle costs.

Excess Capacity

The situation where a firm is producing less than the maximum output due to lack of demand.

Profit-Maximizing Rule

A principle stating that profit maximization occurs when a firm's marginal cost equals its marginal revenue.