Multiple Choice QuestionOne worker can produce 7 units of output with a selling price of $2.60 each. Even though the firm competes in an imperfect market, business is so good that the manager hires a second worker who produces 6 units. To sell these six additional units the firm must lower the price to $2.40 each. Calculate the total revenue for the firm with two workers.Multiple choice question.$32.60$32.50$31.20$33.80

Multiple Choice QuestionOne worker can produce 7 units of output with a selling price of $2.60 each. Even though the firm competes in an imperfect market, business is so good that the manager hires a second worker who produces 6 units. To sell these six additional units the firm must lower the price to $2.40 each. Similarly, the boss hires a third worker who adds 5 units to total product, and these units are worth $2.20 each. But to sell these 5 units, the workers must take a 20-cent price cut on the 13 units produced by the first two workers, so the third worker's MRP is only $8.40. Calculate the total revenue for the firm with three workers.Multiple choice question.$46.80$43.20$32.60$39.60

Multiple Choice QuestionA firm's manager is given the following information: To sell 4 units of output, a price of $132 must be charged; this level of output reflects marginal revenue of $102 and marginal costs of $60. If the firm wants to sell 5 units of output, a price of $122 must be charged; this reflects marginal revenue of $82 and marginal costs of $70. To sell 6 units of output, a price of $112 must be charged; at this level of output, marginal revenue will be $62 and marginal costs $80. What should the manager do?Multiple choice question.Produce 4 units of output and charge $132.Produce an amount greater than 6 units.Produce 6 units of output and charge $112.Produce an amount less than 4 units.Produce 5 units of output and charge $122.

Multiple Choice QuestionA manufacturing company currently produces 1,000 units of a product at a cost of $5,000. The units sell for $7,000. Alternatively, the company can process the units further to produce a refined product that will sell for $10,000. The additional processing will cost $4,000. The company should:Multiple choice question.sell as is because processing further will reduce income by $6,000process further because net incremental income will be $1,000process further because net incremental income will be $6,000sell as is because the incremental income of selling as is versus processing further will increase income by $1,000

Multiple Choice QuestionDuring the period, a company reports Sales of $48,000, Cost of Goods Sold of $28,000, and Income of $2,500. Profit margin is:Multiple choice question.12.5%8.9%5.2%

Multiple Choice QuestionMarginal revenue is less than price at every unit of output because the monopolistMultiple choice question.could have sold these prior units at a higher price if it had not produced and sold the extra output.could have sold these prior units at a price equal to marginal costcould have sold these prior units at a price higher than demandcould have sold these prior units at a lower price if it had not produced and sold the extra output.