A bakery operating in competitive markets sells its output for $20 per cake and rents ovens at $30 per hour. To maximize profit, it should rent ovens until the marginal product of an oven is
a. 2/3 cake per hour.
b. 3/2 cakes per hour.
c. 25 cakes per hour.
d. 10 cakes per hour.
Ans: b. 3/2 cakes per hour.
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