-The Table Shows Information for Jen's Gymnastics

question 126

Multiple Choice

-The table shows information for Jen's Gymnastics.Jen hires coaches and can charge $20 per hour for gymnastics lessons.Jen's Gym pays coaches $30 per hour.The table shows that Jen's Gym will hire ________ coaches because ________.

• A) any number less than 5; the marginal product stops increasing with the fifth coach
• B) 4; the gym will earn a profit because the value of marginal profit exceeds the wage rate., but hiring a fifth coach will reduce profit
• C) 1; the value of marginal product is the highest
• D) 5; the marginal product is at its maximum
• E) 5; total product reaches its maximum

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Definitions:

Developing Nations

Countries with a lower living standard, underdeveloped industrial base, and low Human Development Index relative to other countries.

Wealthy

Having a substantial amount of money, resources, or assets; rich.

Poverty Threshold

The lowest amount of money required to maintain a satisfactory quality of life in a specific country.

Household Size

The number of individuals living in a single domestic unit, whether related by blood, marriage, adoption, or cohabitation.