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Question
Table 17-3| Number of Workers | Output of Microwave Ovens per Week |
| 1 | 30 |
| 2 | 55 |
| 3 | 75 |
| 4 | 90 |
| 5 | 100 |
| 6 | 105 |
Hotspur Incorporated, a manufacturer of microwave ovens, is a price taker in its input and output markets. The firm hires labor at a constant wage rate of $800 per week and sells microwave ovens at a constant price of $80. Table 17-3 shows the relationship between the quantity of labor it hires and the quantity of microwave ovens it produces.
Refer to Table 17-3. What is the amount of profit added as a result of hiring the fourth worker?
A) $7,200
B) $1,200
C) $800
D) $400
Answer
This answer is hidden. It contains 1 characters.
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