The worker productivity of Cutie Cupcakes is presented in the following table.Use the table to answer the following questions:

-If the wage is $8 and the price of a cupcake is $4,what are Cutie Cupcakes' profits at the optimal amount of labor?
A) $2,200
B) $2,600
C) $4,600
D) $5,000
E) $7,500

Question

The worker productivity of Cutie Cupcakes is presented in the following table.Use the table to answer the following questions:
 
-If the wage is $8 and the price of a cupcake is $4,what are Cutie Cupcakes' profits at the optimal amount of labor?
A) $2,200 
B) $2,600 
C) $4,600 
D) $5,000 
E) $7,500

Quizplus · Accepted Answer

The optimal amount of labor is where marginal cost equals marginal revenue. Given the wage and price, the profit is calculated based on the difference between total revenue and total cost at this point.

The Worker Productivity of Cutie Cupcakes Is Presented in the Following