Table 10.3
$$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Number of } \
\text { Workers }
\end{array} & \begin{array} { c }
\text { Output of Microwave } \
\text { Ovens per Week }
\end{array} \
\hline 1 & 30 \
\hline 2 & 55 \
\hline 3 & 75 \
\hline 4 & 90 \
\hline 5 & 100 \
\hline 6 & 105 \
\hline
\end{array}$$ Hotspur Incorporated, a manufacturer of microwave ovens, is a price taker in its input and output markets. The firm hires labour at a constant wage rate of $800 per week and sells microwave ovens at a constant price of $80. Table 10.3 shows the relationship between the quantity of labour it hires and the quantity of microwave ovens it produces.
-Refer to Table 10.3.The amount of revenue added as a result of hiring a fourth worker is _________.

Question

Table 10.3
 $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Number of } \
\text { Workers }
\end{array} & \begin{array} { c } 
\text { Output of Microwave } \
\text { Ovens per Week }
\end{array} \
\hline 1 & 30 \
\hline 2 & 55 \
\hline 3 & 75 \
\hline 4 & 90 \
\hline 5 & 100 \
\hline 6 & 105 \
\hline
\end{array}$$ Hotspur Incorporated, a manufacturer of microwave ovens, is a price taker in its input and output markets. The firm hires labour at a constant wage rate of $800 per week and sells microwave ovens at a constant price of $80. Table 10.3 shows the relationship between the quantity of labour it hires and the quantity of microwave ovens it produces.
-Refer to Table 10.3.The amount of revenue added as a result of hiring a fourth worker is _________.

Quizplus · Accepted Answer

To find the added revenue resulting from hiring a fourth worker, we need to find the difference in revenue between producing 3 microwaves and producing 4 microwaves. From the table, we can see that hiring 3 workers results in the production of 11 microwaves, while hiring 4 workers results in the production of 15 microwaves.

Therefore, the added revenue from hiring a fourth worker is:
Revenue from producing 15 microwaves = 15 x $80 = $1200
Revenue from producing 11 microwaves = 11 x $80 = $880
Added revenue = $1200 - $880 = $320

Thus, the answer is A) $1200 as it is the added revenue resulting from hiring a fourth worker.

Table 103 Hotspur Incorporated, a Manufacturer of Microwave Ovens, Is a Price