Scenario: Victoria Corp. makes running shoes by employing a robotics technology that requires at most a few, but highly skilled, workers for monitoring and maintenance of the robots. Each robot costs $240,000. The table shows the marginal product of capital (MPK) per month when the firm employs one worker versus when it employs two workers. Each pair of Victoria shoes sels for $150. Two Workens MPK One Worker Robots MPK VMPK VMPK (pairn of shoes per month) (pain of shoes per month) 2,000 Fint 2,100 Second Thind 1,600 1,700 1,400 1,00 If the wage is $40,000 per month per worker, should the firm hire one worker or two workers? OA One worker, because one worker costs less than two workers OB. One worker, because the fim's maximum proft will be higher than it would be for hiring two OC. Two workers, because two workers generate more revenue OD. Two workers, because the firm's maximum profit will be higher than it would be hiring one

Scenario: Victoria Corp. makes running shoes by employing a robotics technology that requires at most a few, but highly skilled, workers for monitoring and maintenance of the robots. Each robot costs $240,000. The table shows the marginal product of capital (MPK) per month when the firm employs one worker versus when it employs two workers. Each pair of Victoria shoes sels for $150. Two Workens MPK One Worker Robots MPK VMPK VMPK (pairn of shoes per month) (pain of shoes per month) 2,000 Fint 2,100 Second Thind 1,600 1,700 1,400 1,00 If the wage is $40,000 per month per worker, should the firm hire one worker or two workers? OA One worker, because one worker costs less than two workers OB. One worker, because the fim's maximum proft will be higher than it would be for hiring two OC. Two workers, because two workers generate more revenue OD. Two workers, because the firm's maximum profit will be higher than it would be hiring one

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 8P

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Similar questions

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