Consider a small firm that is producing winter jackets.It can lease an additional sewing machine for one month for $750.With this additional machine,the firm can produce an additional 6 jackets during that time period that it sells for $125 each.Hiring the marginal machine adds ________ to the firm's profit and so it should ________ the machine.
A)-$750; not lease
B)-$750; lease
C)$0; be indifferent as to whether to lease
D)$750; not lease
E)$750; lease

Question

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The Answer of Consider a small firm that is producing winter jackets.It can lease an additional sewing machine for one month for $750.With this additional machine,the firm can produce an additional 6 jackets during that time period that it sells for $125 each.Hiring the marginal machine adds ________ to the firm's profit and so it should ________ the machine.
A)-$750; not lease
B)-$750; lease
C)$0; be indifferent as to whether to lease
D)$750; not lease
E)$750; lease

Consider a Small Firm That Is Producing Winter Jackets