The table below shows the total production for varying numbers of hours worked producing yo- yos. The firm sells its product and hires its workers in competitive markets.
-Refer to Table 13- 4. Which of the following statements best describes the situation of this firm when it is employing 12 hours of labour? The 12th hour of labour hired
A) adds $5 to revenue, but costs $10 to hire, so this firm should hire less labour.
B) adds $30 to revenue, but only costs $10 to hire, so this firm should hire more labour.
C) adds $8 to revenue, but costs $10 to hire, so this firm should hire less labour.
D) adds $10 to revenue and costs $10 to hire, so this firm is maximizing its profit at 12 hours of labour.
E) adds $40 to revenue, but only costs $10 to hire, so this firm should hire more labour.
Correct Answer:
Verified
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