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Dmitry_Shevchenko [17]
3 years ago
8

Omega Custom Cabinets produces and sells custom bathroom vanities. The firm has determined that if it hires 10 workers, it can p

roduce 20 vanities per week. If it hires 11 workers, it can produce 22 vanities per week. It sells each vanity for $800, and it pays each of its workers $1,000 per week. Which of the following is correct?A. For the 11th worker, the marginal profit is $600. B. For the 11th worker, the marginal revenue product is $2,000. C. The firm is maximizing its profit. D. If the firm is employing 11 workers, then its profit would increase if it cut back to 10 workers.
Business
1 answer:
adell [148]3 years ago
6 0

Answer:the correct answer is A. For the 11th worker, the marginal profit is $600.

Explanation:

10 men             20  vanities per week

11   men            22 vanities per week

1 man more       2 vanities more

If the company uses 1 man more produces 2 vanities more, so the company spends $1000 on the extra man and makes 2*$800= $1,600 (for two extra vanities). For the 11th worker, the marginal profit is = $1600-$1000= $600

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