Omega Custom Cabinets Produces and Sells Custom Bathroom Vanities

question 1

Multiple Choice

Omega Custom Cabinets produces and sells custom bathroom vanities. Assume that labor is the only input that varies for the firm. The firm has determined that if it hires 10 workers, it can produce and sell 20 vanities per week. If it hires 11 workers, it can produce and sell 22 vanities per week. It sells each vanity for $800, and it pays each of its workers $1,000 per week. Which of the following is correct?

• A)For the 11th worker, the marginal profit is $600.
• B)For the 11th worker, the marginal revenue product is $2,000.
• C)The firm is maximizing its profit.
• D)If the firm is employing 11 workers, then its profit would increase if it cut back to 10 workers.

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Definitions:

Aggression

A range of behaviors intended to harm or destroy, which can be physical or verbal.

Aggression-replacement Program

A behavioral intervention designed to help individuals reduce aggressive behavior by learning alternative ways to express themselves and cope with situations.

Moral Reasoning

The process of determining right from wrong in a principled way, often guided by ethics and personal values.

Other-race Effect

The tendency to more easily recognize faces of the race that one is most familiar with, also known as the cross-race effect.