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Table 17-3 Hotspur Incorporated, a Manufacturer of Microwave Ovens, Is a Price

Question 263

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Table 17-3
Table 17-3 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. Assume that labor is the only variable input. -Refer to Table 17-3.What is the amount of revenue added as a result of hiring the fourth worker? A) $1,200 B) $7,200 C) 15 microwaves D) 90 microwaves
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. Assume that labor is the only variable input.
-Refer to Table 17-3.What is the amount of revenue added as a result of hiring the fourth worker?


A) $1,200
B) $7,200
C) 15 microwaves
D) 90 microwaves

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