Assume that a firm uses 13 employee-hours and an office to produce 100 units of output.The price of output is $5,the wage rate is $10,and rent is $200.The firm will earn a _____ of _____.

Name: Assume that a firm uses 13 employee-hours and an office to produce 100 units of output.The price of output is $5,the wage rate is $10,and rent is $200.The firm will earn a _____ of _____.
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Question

Quizplus · Accepted Answer

Revenue is $5 times 100,or $500.Total labor costs are $130 and rent is $200,so total costs are $330.$500 - $330 = $170.

Assume That a Firm Uses 13 Employee-Hours and an Office