Consider a small firm that is producing winter jackets.It can lease an additional sewing machine for one month for $2400.With this additional machine,the firm can produce an additional 4 jackets during that time period that it sells for $550 each.Hiring the marginal machine adds ________ to the firm's profit and so it should ________ the machine.
A)-$2400; not lease
B)-$200; not lease
C)$0; be indifferent as to whether to lease
D)$200; lease
E)$2400; 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 $2400.With this additional machine,the firm can produce an additional 4 jackets during that time period that it sells for $550 each.Hiring the marginal machine adds ________ to the firm's profit and so it should ________ the machine.
A)-$2400; not lease
B)-$200; not lease
C)$0; be indifferent as to whether to lease
D)$200; lease
E)$2400; lease

Consider a Small Firm That Is Producing Winter Jackets