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

Question 145

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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 profit added as a result of hiring the fourth worker? A) $7,200 B) $1,200 C) $800 D) $400
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 profit added as a result of hiring the fourth worker?


A) $7,200
B) $1,200
C) $800
D) $400

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