A Sofa Manufacturer Currently Is Using 50 Workers and 30

question 74

Multiple Choice

A sofa manufacturer currently is using 50 workers and 30 machines to produce 5,000 sofas a day.The wage rate is $200 and the rental rate for a machine is $1,000.At these input levels,another worker adds 200 sofas,while another machine adds 500 sofas.If the firm uses 45 workers and 31 machines instead,then its

• A)cost will be unchanged,and its output will decrease by 500 units.
• B)cost will be unchanged,and its output will increase by 300 units.
• C)cost will be unchanged,and its output will increase by 500 units.
• D)output will be unchanged,and its cost will decrease by $800.
• E)none of the above