A sofa manufacturer currently is using 50 workers and 30 machines to produce 5,000 sofas a day.The wage rate is $200 and the rental rate for a machine is $1,000.At these input levels,another worker adds 200 sofas,while another machine adds 500 sofas.If the firm uses 45 workers and 31 machines instead,then its
A) cost will be unchanged,and its output will decrease by 500 units.
B) cost will be unchanged,and its output will increase by 300 units.
C) cost will be unchanged,and its output will increase by 500 units.
D) output will be unchanged,and its cost will decrease by $800.
E) none of the above
Correct Answer:
Verified
Q20: producer is hiring 20 units of labor
Q21: A publishing house is using 400 printers
Q22: Refer to the following graph.The price of
Q23: Which of the following are characteristics of
Q24: Refer to the following graph.The price of
Q26: Refer to the following graph.The price of
Q27: Refer to the following graph.The price of
Q28: Refer to the following graph.The price of
Q29: A firm is using 500 units of
Q30: Refer to the following graph.The price of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents