Use the Following to Answer Questions -(Table: Total Product of Labour at Debbie's Bakery)Use Table: Total

question 109

Multiple Choice

Use the following to answer questions : $$\begin{array}{l}\text { Table: Total Product of Labour at Debbie's Bakery }\\\begin{array} { l c } \begin{array} { l } \text { Quantity of Labour } \\\text { (workers) }\end{array} & \begin{array} { c } \text { Total Product of Labour } \\\text { (cakes per worker) }\end{array} \\\hline 0 & 0 \\1 & 3 \\2 & 10 \\3 & 16 \\4 & 21 \\5 & 25 \\6 & 28\end{array}\end{array}$$
-(Table: Total Product of Labour at Debbie's Bakery) Use Table: Total Product of Labour at Debbie's Bakery.Debbie can sell cakes at $8 each.Debbie must pay each worker $45 per day.How many workers will she hire to maximize profit?

• A) 2
• B) 3
• C) 4
• D) 5

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Definitions:

Sensitivity Analysis

An approach utilized to assess the effects that changes in an independent variable have on a designated dependent variable within established assumptions.

Final Outcome

The ultimate result or conclusion reached after a series of events or processes.

Hard Rationing

A situation in which companies cannot obtain funds for projects through internal sources and external financial markets are unwilling or unable to lend.

Net Present Values

A method of evaluating the profitability of an investment by calculating the present value of all expected future cash flows minus the initial investment cost.