mega Custom Cabinets produces and sells custom bathroom vanities. The firm has determined that if it hires 10 workers, it can produce 20 vanities per week. If it hires 11 workers, a can produce 22 vanities per week. It sells each vanity for $800, and it pays each of its workers $1,000 per week Which of the following it correct? 1) For the 11 th worker, the marginal profit is $600. 2) For the 11 th worker, the marginal revenue product is $2,000. 3) The firm is maximizing its profit. 4)If the firm is employing 11 workers, then its profit would increase if it cut back to 10 workers

mega Custom Cabinets produces and sells custom bathroom vanities. The firm has determined that if it hires 10 workers, it can produce 20 vanities per week. If it hires 11 workers, a can produce 22 vanities per week. It sells each vanity for $800, and it pays each of its workers $1,000 per week Which of the following it correct? 1) For the 11 th worker, the marginal profit is $600. 2) For the 11 th worker, the marginal revenue product is $2,000. 3) The firm is maximizing its profit. 4)If the firm is employing 11 workers, then its profit would increase if it cut back to 10 workers

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.8P

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