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Question 4

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Refer to the following:
A manger of a firm with market power faces the marginal revenue product and average revenue product curves shown below. The firm incurs weekly fixed costs of $1,800. The firm employs a single variable input, labor, which costs $600 per worker each week.
Refer to the following: A manger of a firm with market power faces the marginal revenue product and average revenue product curves shown below. The firm incurs weekly fixed costs of $1,800. The firm employs a single variable input, labor, which costs $600 per worker each week.    -Suppose the weekly wage rate increases to $1,400 per worker. The firm would hire _______ workers and earn a profit of _______ per week. A)  6 ; $8,400 B)  6 ; $6,000 C)  6 ; -$2,400 D)  6 ; $4,800 E)  0 ; -$1,800
-Suppose the weekly wage rate increases to $1,400 per worker. The firm would hire _______ workers and earn a profit of _______ per week.


A) 6 ; $8,400
B) 6 ; $6,000
C) 6 ; -$2,400
D) 6 ; $4,800
E) 0 ; -$1,800

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