Multiple Choice
Use the information below to answer the following questions.
Fact 17.5.1
The Burning Belly Taco Stand is considering buying some new special ovens.Each oven will cost $1,000,and will last for 2 years before it wears out.The ovens will be used to make the Taco Stands famous "Burning Ring of Fire" tacos,and will generate a value of marginal product of $600 for the first oven,$570 for the second oven,and $530 for the third oven.(Assume all revenues are earned at the end of the year. )
-Refer to Fact 17.5.1.If the rate of interest is 5 percent,how many ovens will the Burning Belly Taco Stand buy?
A) zero
B) 1
C) 2
D) 3
E) as many as it can afford
Correct Answer:

Verified
Correct Answer:
Verified
Q85: Coal in an Alberta coal mine is
Q86: Suppose a profit-maximizing firm hires labour in
Q87: Use the table below to answer the
Q88: Use the figure below to answer the
Q89: Suppose the interest rate is 5 percent
Q91: Use the figure below to answer the
Q92: The value of marginal product of labour
Q93: A firm's demand curve for labour shifts
Q94: If the wage rate decreases,the income effect
Q95: The demand for the services of labour