An Auto Service Station Has Four Mechanics

Multiple Choice

An auto service station has four mechanics.If the marginal revenue product of the fourth worker is $375 per day and the mechanics are paid $150 per day,the firm

A) can make a greater profit by laying off some of the mechanics.
B) can make a higher profit by hiring more mechanics.
C) is maximizing profits.
D) will reduce its profits if it hires more mechanics.