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A Manager of a Firm with Market Power Faces the Marginal

Question 41

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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 maximum profit the firm can earn is _____________. A) $4,800 per week. B) $3,000 per week. C) $2,400 per week. D) $1,800 per week. E) -$1,800 per week. Given the above,the maximum profit the firm can earn is _____________.


A) $4,800 per week.
B) $3,000 per week.
C) $2,400 per week.
D) $1,800 per week.
E) -$1,800 per week.

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