Consider a small firm that is producing winter coats. It can lease an additional sewing machine for one month for $750. With this additional machine, the firm can produce an additional 6 coats 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) - $750; not lease
D) $0; be indifferent as to whether to lease
E) - $750; lease

Question

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The Answer of Consider a small firm that is producing winter coats. It can lease an additional sewing machine for one month for $750. With this additional machine, the firm can produce an additional 6 coats 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) - $750; not lease
D) $0; be indifferent as to whether to lease
E) - $750; lease

Consider a Small Firm That Is Producing Winter Coats