Omega Custom Cabinets produces and sells custom bathroom vanities. Assume that labor is the only input that varies for the firm. The firm has determined that if it hires 10 workers, it can produce and sell 20 vanities per week. If it hires 11 workers, it can produce and sell 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.
a
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The figure above shows the supply curve for a good with
A) a perfectly elastic supply. B) a perfectly inelastic supply. C) an elastic supply. D) an inelastic supply. E) a unit elastic supply.
If Country A's real GDP grows at a rate of 14 percent per year, about how many years will it take for Country A's real GDP to double?
A) 10 B) 7 C) 5 D) 30 E) 14
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A) products produced in monopoly industries B) products produced in perfectly competitive industries C) product differentiation D) homogeneous products