Multiple Choice
Use the information below to answer the following questions.
Fact 18.5.1
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 18.5.1. 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) insufficient information to answer
Correct Answer:

Verified
Correct Answer:
Verified
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