Multiple Choice
Table 10.3
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 profit added as a result of hiring a fourth worker is _________.
A) $7200
B) $1200
C) $800
D) $400
Correct Answer:
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