A Manager of a Firm with Market Power Faces the Marginal

Multiple Choice

A manager 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. Given the above,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