A competitive car wash currently hires 4 workers, who together can wash 80 cars per day. The market price of car washes is $5 per wash, and the price of workers is $60 per day. The car wash should hire a fifth worker if it would increase total production to at least:
A. 92 cars per day.
B. 100 cars per day.
C. 104 cars per day.
D. 110 cars per day.
Answer: A
You might also like to view...
What's a direct long-run effect of imposing rent controls on apartments?
A) A rise in demand for rent controlled apartments B) A fall in demand for rent controlled apartments C) A fall in the supply of rent controlled apartments D) A rise in the supply of rent controlled apartments
If government increases taxes by the same amount it increases government spending, there will be no effect on aggregate demand: the increase in government spending is offset by an equal decrease in consumption spending by households
Indicate whether the statement is true or false
The "Big Mac index" was created by The Economist magazine to determine
A. how successful the McDonald's corporation has been around the world. B. the accuracy of exchange rates. C. whether or not the dollar was overvalued or undervalued. D. None of these statements are true.
Vault cash is equal to $2 million, deposits by depository institutions at the central bank are $1 million, the monetary base is $15 million, and bank deposits are $30 million. Bank reserves are equal to
A. $5 million. B. $2 million. C. $3 million. D. $10 million.