Table 18-12 The Table Displays Data for a Small, Competitive, Profit-Maximizing Firm

question 254

Multiple Choice

Table 18-12
The table displays data for a small, competitive, profit-maximizing firm that produces and sells envelopes. The time frame is one week.
-Refer to Table 18-12. Suppose the firm sells each box of envelopes that it produces for $7. Suppose also that the firm's fixed costs amount to $400. How many workers should the firm hire in order to maximize profit, and what is the maximum profit?

• A)The firm should hire 2 workers; its maximum profit is $80.
• B)The firm should hire 2 workers; its maximum profit is $96.
• C)The firm should hire 3 workers; its maximum profit is $96.
• D)The firm should hire 3 workers; its maximum profit is $124.

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Definitions:

Semantic Codes

A type of cognitive encoding that involves the storage of information in memory according to its meaning rather than the sound or vision of it.

STM Loss

Short-Term Memory loss; a condition where an individual has difficulty retaining recent information over short periods.

Decay Theory

The hypothesis that memories fade or are lost over time as a result of the mere passage of time, leading to forgetting.

Memories Deteriorate

The process by which stored memories become less vivid, accurate, or accessible over time.