Answer the question on the basis of the following information for Manfred's Shoe Shine Parlor.Assume Manfred hires labor,its only variable input,under purely competitive conditions.Shoe shines are also sold competitively. $\begin{array}{c}
\begin{array}{c}
\text {Units of}\
\underline{\text {Labor}}\
0\
1\
2\
3\
4\
5\
6\
7
\end{array}
\begin{array}{c}
\text {Total}\
\underline{\text {Product}}\
0\
14\
\
30\
35\
39\
\
44
\end{array}
\begin{array}{c}
\text {Marginal}\
\underline{\text {Product}}\
\
14\
10\
\
\
\
\
2
\end{array}
\begin{array}{c}
\text {Total}\
\underline{\text {Revenue}}\
\
\$ 42 \
\
90\
\
117\
126\
132
\end{array}
\end{array}$
Refer to the given data.At what price does each shoe shine sell?
A) $1.
B) $2.
C) $3.
D) $2.50.

Question

Answer the question on the basis of the following information for Manfred's Shoe Shine Parlor.Assume Manfred hires labor,its only variable input,under purely competitive conditions.Shoe shines are also sold competitively. $\begin{array}{c}
\begin{array}{c}
 \text {Units of}\
\underline{\text {Labor}}\
0\
1\
2\
3\
4\
5\
6\
7
\end{array}
\begin{array}{c}
\text {Total}\
\underline{\text {Product}}\
0\
14\
\
30\
35\
39\
\
44
\end{array}
\begin{array}{c}
\text {Marginal}\
\underline{\text {Product}}\
\
14\
10\
\
\
\
\
2
\end{array}
\begin{array}{c}
\text {Total}\
\underline{\text {Revenue}}\
\
\$ 42 \
\
90\
\
117\
126\
132
\end{array}
\end{array}$
  Refer to the given data.At what price does each shoe shine sell?
A) $1.
B) $2.
C) $3.
D) $2.50.

Quizplus · Accepted Answer

The price per shoe shine is calculated by dividing the total revenue by the total product. For example, at 1 unit of labor, the total revenue is $42 and the total product is 14, so the price is $42/14 = $3 per shoe shine.

Answer the Question on the Basis of the Following Information