-The Table Shows Information for Jen's Gymnastics

question 122

Multiple Choice

-The table shows information for Jen's Gymnastics.Jen's hires coaches and can charge $20 per hour for gymnastics.If the demand for Jen's Gymnastics coaching services increases and the price for coaching increases,Jen

• A) will hire more coaches because the value of marginal product has increased.
• B) will hire fewer coaches because the higher price will decrease the number of gymnasts trained.
• C) will hire fewer coaches in order to make a higher profit.
• D) will hire more coaches because there will be movement up along the demand for labor curve.
• E) may hire more or fewer coaches depending on how the higher price of lessons affects the business.

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Definitions:

Payout Ratio

A financial metric that measures the proportion of earnings a company pays to its shareholders in the form of dividends, typically expressed as a percentage.

Retained Earnings

Retained earnings refer to the cumulative amount of net income a company retains, rather than distributing it to shareholders as dividends.

Net Income

The remainder of a company's total revenue after deducting taxes, expenses, and any other costs.

Shareholders' Equity

The portion of the company's assets that belongs to the shareholders after all liabilities have been subtracted.