Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The accompanying table describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day. Employee-Hours Per DayOutput Per Day0014048091201516023200 When the firm uses 9 employee-hours per day, it earns a daily ________ of ________.
A. profit; $64
B. profit; $114
C. loss; $64
D. loss; $114
Answer: A
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