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Consider a Small Firm That Is Producing Winter Jackets

Question 111

Multiple Choice

Consider a small firm that is producing winter jackets.It can lease an additional sewing machine for one month for $750.With this additional machine,the firm can produce an additional 6 jackets during that time period that it sells for $125 each.Hiring the marginal machine adds ________ to the firm's profit and so it should ________ the machine.


A) -$750; not lease
B) -$750; lease
C) $0; be indifferent as to whether to lease
D) $750; not lease
E) $750; lease

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