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A Manager of a Firm with Market Power Faces the Marginal

Question 55

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A manager of a firm with market power faces the marginal revenue product and average revenue product curves shown below.The firm incurs weekly fixed costs of $1,800.The firm employs a single variable input,labor,which costs $600 per worker each week. A manager of a firm with market power faces the marginal revenue product and average revenue product curves shown below.The firm incurs weekly fixed costs of $1,800.The firm employs a single variable input,labor,which costs $600 per worker each week.   Given the above,the 14<sup>th</sup> worker hired adds $_______ to the firm's total revenue each week. A) $200 per week B) $400 per week C) $500 per week D) $700 per week E) $900 per week Given the above,the 14th worker hired adds $_______ to the firm's total revenue each week.


A) $200 per week
B) $400 per week
C) $500 per week
D) $700 per week
E) $900 per week

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